Government of India

Ministry of Micro, Small & Medium Enterprises

STATE INDUSTRIAL PROFILE

2009-10

MSME- Development Institute

Ministry of Micro, Small & Medium Enterprises
22, Godown Industrial Estate, Jaipur-302006
Phone no. 0141-2212098, 2213099,2215847 Fax-0141-2210553
Email.- dcdi-jaipur@dcmsme.gov.in Website:- www. msmedijaipur. gov. in

1
 CONTENTS

Chapter Subject

Rajasthan at a Glance

1. Introduction

2. Resources

3. Basic Infrastructure Facilities

4. Industrial Scenario in Rajasthan

5. Cluster Industries

6. Potential Industries

7. Concession & Facilities

8. Progress of Various Govt. Scheme

9. Annexure

2
 RAJASTHAN AT A GLANCE

1. Area : 3.42 Lacs Sq. Kms.

2. No. of District : 33

3. Population (2001) : 565.07 Lacs

• Males : 294 lacs

• Females : 271 Lacs
• Sex Ratio : 922
• Rural Population : 43292813 (76.6%)
• Urban Population : 13214375 (23.4%)
• Population Density : 165 Per Sq.Km.
• Decadal Growth : 28.41
• Schedule Caste : 9694462 (17.2%)
• Schedule Tribe : 7097706 (12.6%)
• Literacy Rate : 60.41%
• Workers (main & Marginal) : 42.1%
• Non-Workers : 57.9%
4. Divisions : 7

5. Districts : 33

6. Sub Division : 188

7. Teshils : 241

8. Towns : 222

3
9. Total Villages : 41353

10. Panchyat Samiti : 237

11. Gram Panchayat : 9188

12. Agriculture (2006-07)

• Land Utilisation : 34269701 Hect.
• Total cropped area : 21533809 Hect.
• Area Sown more than once: 4770044 Hect.
• Net area sown : 16763765 Hect.
• Important Crops : Paddy, Jowar, Bajra, Wheat,
Mustard, Maize, Barley, Methi,
Tarameera, Linseed, Corriander,
Garlic, Red Chillies, Soyabeeen,
Ground Nut, Chaula, Moth, Urad
13.Forest (2008-09)
• Reserved Area : 37.78%
• Protected Area : 53.73%
• Un Classified Area : 8.49%

14. Live Stock (2007) : 591.68 Lacs

15. Important Minerals : Gypsum, Limestone, Mica

Silica, Quartz, China Clay,
Asbestos, Dolomite, Felspar,
Wollestonite, Rock Phosphate
Garnet

4
16. Technical Institutions :
• Universities (Govt.& Pvt.) : 14
• Engineering College : 78
• MBA & MCA Institutions : 124
• Polytechnique & ITI : 724
• Medical & Dental College : 20

17. Road Length : 1.86 lakh KMs.

18. Communication Facilities (March-09) :

• Post Office : 10316
• Telegraph Office : 486
• Telephone Exchange : 2334
• Public Call Office : 94683
19. Bank Branches (December 2009)
• Commercial Banks : 2983
• RRBs : 1042
• Cooperative Banks : 561
• Total Bank Branches : 4586
20. Electricity (2006-07)
• Total Generation of Electricity: 3242.715 Million KWH
• Total Consumption : 16468.319 Million KWH
• Per Capita consumption : 5758.05 KWH
21. Industrial Areas (Nos.) (Up to Novemeber-2009)
No. of Industrial Area Developed : 322
• No. of Plots Planned : 56962
• No. of Plots Allotted : 49191

5
 • No. of Units in Production
22. Industries
• Large Scale Industry
• Investment
• Employment
• Medium Scale Industry
• Investment
• Employment
• Small Scale Industry
• Investment
• Employment
23. Exports (2008-09)
24. Potential Industries
• Agro based Industry
• Mineral based Industry
6
: 26984
: 206
: 36307.77 Lacs
: 1.17 lacs
: 64
: 1200.69 lacs
: 0.11 lacs
: 3.19 lacs
: 88820.7 Lacs
: 13.16 Lacs
: Rs. 15236.42 Crore
:
: Cattle Feed, Dal Mill,
Edible Oils, Guar Gum,
Rice Milling, Vanaspati
Ghee, Poha Making,
Maida, Suji, Biscuit,
Bread
: Cement, Glazed Tiles,
Marble & Tiles, Quick Lime,
Stone Carving White
cement, Zinc Oxide,
Refractory, Cutting &
polishing of Stones
• Electrical & Electronics
• Engineering Industries
• Leather & Leather
• Chemical & Plastic Product
• Textile Based Industry
7
: Black & White TV, Copper
Foils, Computer Floopy,
Copper Wire, Meters, Re-
rolled Products, TV Picture
Tubes, halogen Lamps & Bulbs,
Conductors, Digital Electronic
Watch
: Ball Bearing, Hand Tools,
Heavy Duty Trailers, Meters, Nuts
& Bolts, Steel Ingots, Railway
Wagons, Machine Tools &
accessories
: Cycle Seats, Fancy items,
Ladies Footwear, Leather
Garments, Leather
Tanning, Shoes Making
: Caustic Soda, Fertilizer &
Chemicals, Hawaii
Chappal, HDPE Woven Sacks, Nitro
Chloro Benzene, PVC Footwear,
PVC Doors, PVC Resins,PVC Rigid
Pipes, Rubber & plastic based
product, Tyre retreading, Zinc
Cadimum, Zinc Sulphate
: Dying & Printing,
 Grey cotton cloth, wollen blanket,
processing of synthetic fabrics,
various types of yarns.
• Animal Husbandry : Bone Crushing, Butter,
Cheese base Industry & Milk
Chilling powder,
Skimmed Milk

8
 CHAPTER – I

INTRODUCTION

9
INTRODUCTION
Rajasthan, the largest state of India (3,42,239 Sq.km.) situated in the
northwestern part of the Indian Union (23˚30’ and 30˚12’ North latitude
and 69˚30’ and 78˚17’ East longitude) is largely an arid state for most of its
part. The Tropic of Cancer passes through south of Banswara town.
Presenting an irregular rhomboid shape, the state has a maximum length of
869 km. from west to east and 826 km. from north to south. The western
boundary of the state is part of the Indo-Pak international boundary,
running to an extent of 1,070 km. It touches four main districts of region,
namely, Barmer, Jaisalmer, Bikaner and Ganganagar. The state is girdled by
Punjab and Harayana states in the north, Uttar Pradesh in the east, Madhya
Pradesh in the southeast and Gujarat in the southwest. The area of
Rajasthan is nearly equivalent to some of the developed countries of the
western world like Norway (3, 24, 200Sq.km.) Poland (3, 12,600 sq.km.)
and Itlay (3,01,200 sq. km.) The Administrative set up of the State is given
below.
Table No.1.1.
Administrative Set-up of Rajasthan State
Sl. No. Items Particulars
1 Area ( In Lac sq.Kms) 3.42
2 Divisions 07
3 Districts 33
4 Sub-Divisions 188
5 Tehsils 241
Zila Parishad 33
6 Municipalities 189
7 Panchayat Samities 239
7 Gram Panchayats 9,184
8 Total Villages 41,353
9 Inhabited Villages 39,753
10 Cities & Towns 222
Source: Directorate of Economic and Statistics Rajasthan, 2009.

10
 There are 33 districts in the State; their geographical area is given
below. Details of newly constituted district namely Pratapgarh was not given
in the table, hence details of 32 districts was given below.
Table 1.2
District wise Area
Sl.No Name of Districts Area in Sl.No Name of Districts Area in
Sq. Kms. Sq.Kms.
1 Ajmer 8,481 17 Jhalawar 6,219
2 Alwar 8,380 18 Jhunjhunu 5,928
3 Banswara 5,037 19 Jodhpur 22,850
4 Barmer 28,387 20 Kota 5217
5 Bharatpur 5,066 21 Karauli 5524
6 Bhilwara 10,455 22 Nagaur 17,718
7 Bikaner 27,244 23 Pali 12,387
8 Bundi 5,550 24 Sawai Madhopur 10,527
9 Chittorgarh 10,856 25 Sikar 7,732
10 Churu 16,830 26 Sirohi 5,136
11 Dholpur 3,034 27 Tonk 7,194
12 Dungarpur 3,770 28 Udaipur 12,511
13 SriGanga Nagar 10978 29 Baran 6,955
14 Jaipur 11,588 30 Dausa 2,950
15 Jaisalmer 38,401 31 Rajsamand 3860
16 Jalore 10,640 32 Hanumangarh 9,656
Source: Directorate of Economic and Statistics Rajasthan, 2009.

1.1 Climate and Rainfall

The climate of the State in general is characterized as the driest in the

country and having a large variation. The maximum temperature in the
State goes up to 48°C whereas the minimum temperature falls upto –0.0°C.
The maximum and minimum temperature recorded in 2002 at important
centers of the State varies maximum 48.0ºC and minimum 0.0ºC in Churu.

11
 The rainfall in the State is not only meager but also varies from year to year
and creates drought condition frequently. The State has been experiencing
severe drought condition for the last four consecutive years. The normal
average annual rainfall in the State during 2001 was 57.43 cms.
Table No.1.3

Temperature and Rainfall at important Centers in Rajasthan

DISTRICT Temperature Normal rainfall

Maximum Minimum (in Cms)
(in Degree ˚C) (in Degree ˚C)
1 Ajmer 43.3 6.2 60.18
2 Alwar 46 NA 65.73
3 Banswara 45.0 9.5 95.03
4 Baran -- -- 87.38
5 Barmer 44.9 9.1 26.57
6 Bharatpur NA NA 66.39
7 Bhilwara -- -- 68.32
8 Bikaner 47.0 0.8 24.30
9 Bundi N.A. N.A. 77.34
10 Chittorgarh 43.4 0.7 84.15
11 Churu 48.0 0.0 35.47
12 Dausa -- -- 56.10
13 Dungarpur NA NA 72.89
14 Dholpur NA NA 74.45
15 Ganganagar 48.5 0.2 22.64
16 Hanumangarh -- -- 27.35
17 Jaipur 45.2 2.5 56.38
18 Jaisalmer 47.0 5.6 18.55
19 Jalore NA NA 37.00
20 Jhalawar NA NA 84.43
21 Jhunjhunu 45.6 0.4 40.51
22 Jodhpur 45.7 5.0 31.37
23 Karuli -- -- 67.07
24 Kota 47.0 7.8 73.24
25 Nagaur NA NA 31.17
26 Pali 45.5 5.3 42.44
27 Rajsamand -- -- 56.78
12
28 Sawai Madhopur 46.5 4.2 87.34
29 Sikar NA NA 44.03
30 Sirohi NA NA 59.12
31 Tonk 43.4 NA 66.83
32 Udaipur 43.6 2.5 64.50
Source: Statistical Abstract, Rajasthan, 2009

1.2 Population.

The population of the State according to 2001 Census is 5.65 crores.

Males constitute 2.94 crores (52.27%) and the remaining 2.70 crores
(47.73%) are females. 76.62% of the total population in the State lives in
rural areas and 23.38% live in urban areas. The sex ratio of population was
922 females per 1000 males. The population of Rajasthan has been
growing at a faster rate as compared to the average growth rate of
population of India, though the growth rate between 1981 - 91 was lesser
than the growth rate between 1971 – 81. The following Table depicts the
population of Rajasthan since 1951 as compared to the average in India.

Table No.1.4

Population trend in Rajasthan

Sl.No Year Total Population (in crores) Population decadal Growth

Rate (in%)
Rajasthan India Rajasthan India
1 1951 1.60 36.01 15.2 13.3
2 1961 2.02 43.91 26.2 19.3
3 1971 2.57 54.70 27.63 24.80
4 1981 3.41 68.38 32.36 24.74
5 1991 4.40 84.40 28.44 23.50
6 2001 5.65 102.86 28.41 21.52
Source: Directorate of Economic and Statistics Rajasthan, 2008

13
1.3 Scheduled Caste/Scheduled Tribe Population.

As per 2001 Census 96.94 Lakhs persons i.e. 17.2% of the total
population of the State belong to Scheduled Caste and 70,97,706 persons
i.e. 12.6% belong to Scheduled Tribe community.

Total % population of Schedule caste and schedule tribe

Year
Category 1991 2001
SC ST SC ST
Rajasthan 17.27 12.43 17.2 12.6

1.4 Density of Population

Despite the relatively high growth rate of population, the density of

population in Rajasthan, as per the 2001 Census is 165 persons per sq. km.
while it is 84 persons per sq. km. in the desert region; it is 203 persons in
other areas. The Table below reflects the trend in density of population of
Rajasthan in comparison to that of India.

Density of Population

Name Year
1951 1961 1971 1981 1991 2001
Rajasthan 47 59 75 100 129 165
India 117 142 171 221 267 324

Population density in the state is approximately half of the national

density which is 325 in 2001.

1.5 Literacy.

As per the provisional population of Census 2001 Rajasthan is has

recorded literacy rate of 60.4 which is quite significant as it was only 38.55
in 1991. Rajasthan is educationally a backward State. The situation of
female literacy is particularly alarming. A wide gap exists between the rate
of literacy in urban and rural areas and among male and female. The
literacy level of 60.4 % (2001) in the State was the lowest among States
14
 except Bihar. Female literacy in Rajasthan is 43.9 (males is 75.7) as
compared to All India female literacy of 53.7%.

1.7 Sex Ratio

The sex ratio denotes the number of females per thousand males. A
high sex ratio would mean excess of females on males and a low sex ratio
would mean excess of males over females.

Sex ratio in India and Rajasthan- 2001

Year 1951 1961 1971 1981 1991 2001

Rajasthan 924 908 911 919 910 921
India 946 941 930 934 927 933

Rajasthan has registered a significant increase in the sex ratio from

910 in 1991 to 921 in 2001. Table showing the population distribution,
percentage of growth rate, sex ratio and population density (district wise) is
given below.

Table No.1.5

Population distribution, Percentage decadal growth rate,

Sex -ratio and population density

Sl. State/ Population – 2001 Percentage Sex-ratio Population

No. District (in 000) decadal (Number density
growth rate. of females perSq.Km.
per 1000
males)
TOTAL Males Females 81-91 91-01 91 01 91 01
Rajasthan 56507 29420 27087 28.44 28.41 910 921 129 165
01 Ajmer 2182 1130 1052 20.05 26.2 918 931 204 257
02 Alwar 2992 1587 1405 30.82 30.3 880 886 274 357
03 Banswara 1502 761 741 30.34 29.9 969 974 229 298
04 Baran 1022 535 487 27.30 26.1 896 909 116 146
05 Barmer 1965 1038 927 28.27 36.9 891 892 51 69
06 Bharatpur 2101 1133 968 27.14 27.2 832 854 326 414
07 Bhilwara 2014 1027 987 21.58 26.4 945 962 152 192
15
08 Bikaner 1674 886 788 42.70 38.2 885 890 44 61
09 Bundi 963 505 458 25.85 25.0 889 907 139 173
10 Chittaur- 1803 918 885 20.42 21.5 950 964 137 166
garh.
11 Churu 1924 988 936 30.84 24.7 937 948 92 114
12 Dausa 1317 693 624 30.81 32.4 884 899 290 384
13 Dholpur 983 538 445 28.10 31.2 795 827 247 324
14 Dungarpur 1108 548 560 28.07 26.7 995 1022 232 294
15 Ganga- 1789 955 834 18.25 27.6 865 873 176 163
nagar
16 Hanuman- 1518 801 717 44.60 24.4 891 894 96 157
garh
17 Jaipur 5251 2768 2483 38.73 35.1 892 897 349 471
18 Jaisalmer 508 279 229 41.73 47.5 807 821 9 13
19 Jalore 1449 738 711 26.52 26.8 942 964 107 136
20 Jhalawar 1180 613 567 21.91 23.3 918 926 154 190
21 Jhunjhun 1914 984 930 30.61 20.9 931 946 267 323
22 Jodhpur 2887 1514 1373 29.12 34.0 807 907 9 129
23 Karauli 1210 652 558 28.66 30.4 840 855 168 218
24 Kota 1568 827 741 35.88 28.5 881 896 224 288
25 Nagaur 2775 1425 1350 31.69 29.4 942 947 94 157
26 Pali 1820 919 901 16.63 22.5 956 981 120 147
27 Rajsamand 987 493 494 17.97 20.0 991 1000 213 256
28 Sawai 1117 591 526 27.22 27.6 870 889 290 248
Madhopur
29 Sikar 2288 1173 1115 33.81 24.1 946 951 238 296
30 Sirohi 851 438 413 20.66 30.1 949 943 127 166
31 Tonk 1212 627 585 24.42 24.3 923 934 136 168
32 Udaipur 2633 1336 1297 24.52 27.4 956 971 154 196

1.8 Working Population.

On the basis of economic activities, the population of the State is

classified in to three main categories, viz. Main Workers, Marginal Workers
and Non-Workers. As per 2001 Census 2, 37, 66,655 persons i.e. 42.1% of
the total population of the State constitute main and marginal workers and
16
 32740533 person’s i.e 57.9% are non-workers. The main workers were
further classified as Cultivators, Agricultural Labours, Household industrial
workers, Manufacturing, processing, servicing and Repairing Workers,
Construction Workers and other workers.
Distributation of main and marginal workers by Activities.

Category Total

Main Worker 9582029

Cultivators 13140066
Marginal Worker 3558037

Agricultural Main Worker 1008417

Laborers 2523719
Marginal Worker 1515302

Household Industry Main Worker 501312

677991
Marginal Worker 176679

Other Workers Main Worker 6345130

742879
Marginal Worker 1079749

1.9 Land Utilization.

The land utilization pattern of Rajasthan during the year, 2001-02

shows that out of total geographical area of 34.26 million hectares, total
cropped area accounted for 20.79 million hectares i.e. %. Net area sown
accounted for 16.76 million hectare or %. Area sowed more than once
constituted 4.03 million hectares or % of the net area sown. The
following Table shows the break-up of land utilization pattern of Rajasthan
during the year 2001-02.
17
Table No.1.6
Land utilization Pattern

Sl. Classification 2006-07

No 000 Hectares Percentage
to total area
1 Geographical area 34,264 100
(for the land utilization purpose)
i) Forest 2,697 7.87
ii) Land put to non-agricultural use 1,834 5.35
iii) Barren & uncultivable land 2,427 7.08
iv) Permanent Pastures & other grazing 1,705 4.97
land
v) Land under Misc. trees crops & groves. 20 0.05
vi) Cultivable waste
vii) Current Fallow 4,611 13.45
viii) Other fallow land 1,939 5.65
ix) Net area sown 2,265 6.61
16,763 48.92
2. Area sown more than once 4,770 28.45*
3. Total cropped area 21,533 62.84
Source: Directorate of Economics & Statistics, Rajasthan-2008 *Percentage to net area sown

1.10 Economic Indicator

Estimates of State Domestic Products are important economic indicators to

measure economy. It is treated as one of the important tools to measure the
regional disparities. It is also used by policy makers namely Planning Commission
and Finance Commission for allocation of Plan Resources and distribution of taxes
and duties to different States.
In the present analysis, the estimates of State Domestic Products (SDP)
have been given both at constant (base the economic development of the State.
The per capita State Domestic Product is used to determine both the absolute
and relative performance of the 1993-94) and current prices. The estimates of

18
 S.D.P. at constant prices reflect the production effects on the economy, while the
estimates at current prices depict the combine effect of production and prices.
Estimates of state income, SGDP and SNDP are given in ensuing papras.

NET STATE DOMESTIC PRODUCT AT CURRENT PRICES

GDP (Crore Rupees) (% Growth over previous year)

2004-05 2005-06 2006-07 2007-08 2004-05 2005-06 2006-07 2007-08
Rajasthan 102376 112145 128997 145125 4.21 9.54 15.03 12.50
All-India 2548660 2902074 3342347 3811441 12.87 13.87 15.17 14.03
Source- Economic Survey-2009-10

State contribution towards nation GDP is only 4.2% at current price whereas
the same figure at constant price is 4.5%. Till 2000-01 growth rate of GDP at
constant and current prices for the state was much below for the state as
compared to nation’s growth rate but in 2001-02 the state’s growth edge-over the
nation’s growth rate that may be because of in the previous year economy
couldn’t grow to its regular growth due to continue draught in these years had a
bad impact over the state GDP growth.
PER CAPITA NSDP (STATE INCOME) AT CURRENT PRICES

( Rupees) (% Growth over previous year)

2004-05 2005-06 2006-07 2007-08 2004-05 2005-06 2006-07 2007-08

Rajasthan 18008 21203 23933 27257 6.72 17.74 12.88 13.89
All-India 26003 29524 33283 37490 12.09 13.54 12.73 12.64
Source- Economic Survey-2009-10

It is evident from the data inserted in above table that per capita income
growth reveals the same picture as GDP growth. State per capita income i.e.
13825 and 8819 at current and constant prices respectively, lie far below than
national average which is 17978 at current price and 10754 at constant price.
19
State per capita income is one forth of nation’s per capita income at current price
where as at constant price this figure is slightly higher than one forth.

NET STATE DOMESTIC PRODUCT

Net state Domestic Product is arrived at after deducting the value of

consumption of fixed capital (CFC) or depreciation from gross State Domestic
Product. Year-wise details of NSDP at current and constant prices are given in
ensuing tables.

NET STATE DOMESTIC PRODUCT AT CURRENT PRICES

(Crore Rupees) (% Growth over previous year)

NDP 2005-06 2006-07 2007-08 2005-06 2006-07 2007-08
Rajasthan 133476 153354 177715 19.90 14.89 15.89
All-India 3342347 3811441 4353400 15.17 14.03 14.22
Source- Economic Survey-2008-09 and Economic Survey of Rajasthan-2008/09

20
 CHAPTER – 2

RESOURCES

21
2.0 RESOURCES

Rajasthan has exhibited spectacular progress in several areas like

agricultural production, harnessing of mineral resources, development of
transport and communication, and the production of energy resources but
the rate of progress and plans of economic development have been slowed
to a large extent by a parallel growth of human population and livestock.
Human resources are, therefore, to be geared into the channel of economic
progress while taking care to arrest their future growth-rate.

2.1 Agriculture

Agriculture remains the main-stay of the population of the State.

A study of composition of the Net State Domestic Product indicates that the
primary sector which includes agriculture, animal husbandry, forestry,
fishing, mining and quarrying still continues to dominate the State’s
economy as nearly 42 to 48 per cent value addition is generated by this
sector in the State. Further, agriculture including animal husbandry alone
contributes near about 90 per cent value addition of primary sector.
The land utilization pattern of the State during 2006-2007
revealed that out of a total cropped area of 21.53 million hectares, 16.76
million hectares account for net area sown and 4.77 million hectares area
sown more than once. Rajasthan is predominantly an agrarian State with
about 70 per cent of its population depending on agriculture. Agriculture
plays an important role in the State’s economy. State’s position can be
visualized from its contribution at nation level from table inserted below.

22
 Table No.2.1
Share and Rank of the various crops

Productivity in Kg./ hect.

Crops 2004-05 2005-06

India Rajasthan % Rank India Rajasthan % Rank
share share
Cereals
Wheat 68.64 5.71 8.32 V 69.35 5.87 8.46 V
Bajra 7.93 3.00 37.83 I 7.68 2.76 35.94 I
Maize 14.17 1.26 8.89 V 14.71 1.10 7.48 V
Pulses
Gram 5.47 0.77 14.08 II 5.60 0.48 8.57 V
Total pulses 13.13 1.34 10.21 IV 13.38 0.90 6.73 VI
Oilseed
Mustard 7.59 3.97 52.31 I 8.13 4.42 54.37 I
Groundnut 6.77 0.45 6.65 VI 7.99 0.49 6.13 V
Soyabean 6.88 0.89 12.94 III 8.27 0.86 10.40 III
Others
Cottton 16.43 0.76 4.63 V 18.50 0.88 4.76 VI
Source: Directorate of Agriculture, Rajasthan, 2005-06

Productivity status of Rajasthan compared to all India Under major crops of

year 2004-05 and 2005-06 as under.

23
Table No.2.2
Comparative status of the productivity of various crops
Productivity in Kg./hect.

Crops 2004-05 2005-06

India Rajasthan Rank India Rajasthan Rank
Cereals
Wheat 2602 2839 III 2619 2762 III
Bajra 859 658 VIII 802 556 X
Maize 1907 1211 XIII 1938 1098 XIV
Pulses
Gram 815 747 VIII 808 443 XII
Total 577 375 XIV 598 261
pulses
Oilseed
Mustard 1038 1078 III 1117 1205 I
Groundnut 1020 1552 II 1187 1549 III
Soyabean 908 1425 II 1073 1150 II
Others
Cottton 318 297 V 362 317 V
Source: Directorate of Agriculture, Rajasthan,

Coriander, Cumin, Guar, Moth, Bajra, Rape & Mustard, these are the
crops in state has got dominance in the production and hold Ist rank and
became the leading producer in many other crops.The area and production of
major crops for the year 2006-07 is depicted in the following table.

24
Table No.2.3
Area, Production and productivity of Major crops
(2006-2007)
Cereals Area in hectare Production in Tonnes
Kharif Rice 107758 169823
Jowar 662055 367816
Bajra 4910409 3440400
Maize 1032079 1117941
Millets 16715 5107
Rabi Wheat 2564840 7755883
Barley 232269 591582
Pulses
Kharif Tur/ Arhar 18555 9287
Other Pulses 2132910 541284
Rabi Gram 1010754 872559
Other Pulses 44995 56635
Oil seeds
Kharif Sesamum 273345 88694
Groundnut 306037 399509
Castor seed 91821 100646
Rabi Rape and 3099570 3766923
Mustard
Linseed 1264 998
Tarameera 106995 31127
Others
Kharif Sugarcane 10897 628963
Cotton 349602 126956
Chilies 18374 16176
Rabi Coriander 136755 142369
Methi 27810 29908
Onion 42562 413558
Garlic 13441 48203
Isaboal 82347 26416
Sources: Directorate of Agriculture, Rajasthan, Jaipur
As bajra is the main cereals for the Kharif crop and wheat is the main crop
for Rabi, having maximum area under the cultivation, as shown in the table.
Total area under cereals production is 9526125 hectares during 2006-07 and
total area under pulses production is 3207214 hectares in the same period. Total

25
production of pulses for the year 2006-07 is 1479795 tones of in the Kharif and
Rabi seasons. Maize and Bazra jointly occupies approx. 50% of the area under
Kharif season and contributes to more that 50% of the production for this season.
Wheat and Barley together cover 41% area of Rabi season and logged approx.
70% production of this season. Dissimilarity in the productivity in each season is
apparent from the above figure in the table.

2.2 Irrigation

Agriculture is major sector contributing in the state economy. State GDP’s

25-30% is from this sector, and about 2/3 of the population is dependant on the
agriculture and its related activity. Irrigation penetration is very low in the state
this can be ascribed to irregular and scarce rainfall, depleting ground level water
and only a few perennial rivers flow through the state and that is also in the
southern part of the state.
There are four major sources of irrigation viz. Canal, tanks, wells and tube
wells. The main source of irrigation in the state is Wells and tube wells, having
maximum irrigated area, only a portion of the northern and southern-eastern part
of the state got irrigation facilities from rivers and canal. Due to less rain, depth of
water level is decreasing day by day and wells are dry, it can also be seen from
the table that the percentages of area irrigated by tanks are increasing. Due to
Indira Gandhi Canal, western part of the state is also getting irrigation facility.
Source-wise irrigation details for the three years are as given below;
Table-2.4
Gross Irrigated Area By Source

Type of Sources Area Covered Under Cultivation (In 000 Hectares)

2005-06 2006-07 2007-08
Canals 1706 1703 1688

26
Tanks 77 131 102
Wells &Tube 4426 4581 4572
wells
Others 85 81 82
All Sources 6294 6496 6444
Source: Economic review-2009-10

Total irrigated area (in 000 hects.)

5000
irrigatedarea

4000 2005-06
3000
2006-07
2000
1000 2007-08
0
Canals

Tanks

Wells &Tube

Others
wells

type of source

2.3 Animal Husbandry

Agriculture plays an important role in Rajasthan economy and nearly

one fourth of the total state income is generated by Agriculture and allied
activities including Animal Husbandry. In Rajasthan, Animal Husbandry is
not merely a subsidiary to Agriculture but it is a major economic activity
specially in arid and semi-arid areas, thus providing the much needed
insurance against prominently occurring scarcity conditions. Income from
live stock accounts for 30 to 50% of the Rural households income, with wide
variation in region and households.

27
 Live Stock Sector tops in rural employment with 4.5 percent growth
against 1.75 for all other Sectors and 1.1 for Agriculture. This Sector has
also the highest potential for rural self-employment generation at the lowest
possible investment per unit. Development of Livestock Sector therefore, is
critical to rural prosperity. The Animal husbandry sector is harbouring a
fabulous livestock wealth having very significant role in providing subsidiary
to major sources of income to the large numbers of cultivators, small
farmers, marginal farmers, BPL families and agricultural laborers. Milk
enterprise generates income on regular basis as against the crop enterprise,
which is mostly seasonal and is more prone to droughts. Cattle are mainly
looked after by the women folk. The provision of assured market for the
milk leads to their increased participation and the availability of cash income
encourages them to take up to social development Programmes.
In Rajasthan animal husbandry is major economic activity contributing
13 percent of the State's net domestic product. As against twenty five well
defined breeds of cattle and seven buffaloes breeds in the country, the state
is endowed with seven breeds with finest drought hardy milch breeds
(Rathi, Gir and Tharparkar), dual purpose breeds (Kankrej and Haryana) and
the famous draught breeds of Nagauri and Malvi.
Livestock production in general and cattle and buffaloes in particular is
highly women oriented as it is labour intensive. Over 95% of households
chore is related to the care and management of milch animals in livestock
owing households are dealt by women and 60% of all labour engaged in
rural livestock production are women. Live stock sector in Rajasthan is thus
extremely livelihood intensive, closely interwoven into the social economic
fabric of the rural society, making investments in development of this Sector

28
 the critical pathway for rural prosperity. The details of livestock population
since 1951 are given below:

Table No.2.6

Livestock population as per livestock census of 2007

(No. in lakhs)
Item 1951 1961 1972 1983 1992 1997 2003 2007
Cattle 107.82 131.36 124.70 135.04 116.66 121.41 108.54 124.10
Buffalo 30.45 40.19 45.92 60.43 77.75 97.70 104.14 115.42
Sheep 53.87 73.60 85.56 134.31 124.91 145.85 100.54 112.83
Goat 55.62 80.52 121.62 154.80 152.85 169.71 168.09 218.81
Camel 3.41 5.70 7.45 7.56 7.46 6.69 4.98 4.30
Others 3.99 3.72 3.53 4.36 4.82 5.19 5.07 16.22
Total 255.16 335.09 388.78 496.50 484.45 546.55 491.36 591.68
Source: 18 live stock census

Rajasthan is endowed with a rich animal husbandry resource. 35% of

country’s livestock population that is 591.68 lakhs as per 2007 census is in the
state and 19% of state revenue is derived out of this sector. Livestock population
at segregated level is given in ensuing table.
Rajasthan has got approximately one livestock per person that is a fair
number. Jaiselmer and Barmer are placed at two consecutive places on this
account with 5 and 2 livestock per person. Livestock density is 159 per k.m. as per
2003 census.
Production of milk of various sources and wool production during last three
years is as under;

Milk Production
(Production in 000 tons)
Year Cow Buffaloe Goat Others Total
2004-05 2148 5065 909 - 8122
2005-06 2544 5188 981 - 8713
2006-07 2242.57 5827.14 1017.82 288.57 9376.11

29
Wool production

Year Wool production (in lakh kg.)

2004-05 150.49
2005-06 154.05
2006-07 156.85

State produces 10% of country’s milk, 30% of goat meat and 40% of
wool. Milk and egg production over the year is catching up considerably
though the growth in wool production is almost stagnant.

FISHERIES

Rajasthan possess a large area of inland water bodies which offer

potential for development of both intensive and extensive system of culture
based fisheries. From the available fresh water resources in the state 3.30
lakh ha. of inland water sheets in the form of reservoir (1.2 lakh ha.) tanks,
and ponds (1.8 lakh ha.) and rivers (0.30 lakh ha.) have been identified for
capture cum culture fishery management. Besides, there exists 0.04 lakh ha.
brackish water bodies and perennial flowing system, 214 KM. Indira Gandhi
Feeder Canal and about 500 KM under I.G.N.P. in north west Rajasthan.
Apart from this there are many constraint in increasing production
• Uncertain and irregular monsoon.
• Draining/ pumping out of maximum stored water for Irrigation and
Drinking purposes.

• Shortage of quality fish seed.

• Lack of traditional fishermen community.

• Lack of awareness among rural masses.

• Lack of technical know how in rural sector for fish culture.

30
Forestry

Forests are one of the important natural resources so far as

environmental protection and ecological balance are concerned. In
Rajasthan only 9.49 per cent of the total geographical area of the State
(4.19% of the country) is classified as forest area (3261984.314 Hectares).
Further classification of the forest is as under (2008-09):

S.No. Type of Area Area (in hectare ) % of the total

1 Reserved Area 1232511.662 37.78
2 Protected Area 1752596.152 53.73
3 Un Classified Area 276876.500 8.49
Source: Facts about Rajasthan, DES, Jaipur-2009

Forest area of the state

276876.5,
8% Reserved Area
1232511.7
, 38%
Protected Area

1752596.2 Un Classified
, 54% Area

Produces from the forest is as under

S.No. Item 2005-06 2006-07 2007-08 2008-09

1 Fire Wood 5.38 4.52 3.73 3.98
(in Lakhs Qts.)
2 Timber 3.80 3.54 3.85 3.63

31
 (in Lakhs Qts.)
3 Bamboo 10.63 10.14 11.93 17.58
(no. in lakhs)
4 Tendu patta (no. in lakhs 1.57 2.33 5.26 3.44
standard Bags)
Source: Facts about Rajasthan, DES, Jaipur-2009

forest produces

20

15
units

10 Fire Wood

5
(in Lakhs Qts.)
0
2005- 2006- 2007- 2008- Timber
06 07 08 09
year (in Lakhs Qts.)

District-wise area under forest as on 31.03.2006 is given as under.

S.No. Name of District Geographical Area in Sq. Kms Forest area in Sq. Kms

1. Ajmer 8,481.00 613

2. Alwar 8,380.00 1784.14
3. Banswara 5,037.00 1236.67
4. Baran 6,955.00 2231.71
5. Barmer 28,387.00 609.10
6. Bharatpur 5,066.00 382.39
7. Bhilwara 10,455.00 794.18
8. Bikaner 27,244.00 1248.73
9. Bundi 5,550.00 1524.15
10. Chittorgarh 10,856.00 2766.53
11. Churu 16,830.00 71.22
12. Dausa 2,950.00 282.63
13. Dholpur 3,034.00 638.45
14. Dungarpur 3,770.00 694.98
15. Sriganganagar 7,944.00 633.44
16. Hanumangarh 12,690.00 239.46
17. Jaipur 11,588.00 948.68
32
18. Jaisalmer 38,401.00 581.29
19. Jalore 10,640.00 450.68
20. Jhalawar 6,219.00 1338.76
21. Jhunjhunu 5,928.00 405.35
22. Jodhpur 22,850.00 247.89
23. Karauli 5,052.00 1935.21
24. Kota 5,481.00 1316.33
25. Nagaur 17,718.00 240.93
26. Pali 12,387.00 960.80
27. Rajsamand 4,768.00 396.58
28. Sawaimadhopur 5,005.00 858.98
29. Sikar 7,732.00 637.68
30. Sirohi 5,136.00 1638.65
31. Tonk 7,194.00 331.94
32 Udaipur 12,511.00 4587.42
Total 3,42,239.00 32627.95
Source: Statistical Abstract-2009

MINERAL RESOURCES

Rajasthan has a very rich mineral resource; their judicious exploitation

can make the state economically self-sufficient. State’s Dominance in
mineral production can be understood from the statistics in the ensuing
table.
MINERAL PRODUCTION IN RAJASTHAN & PERCENTAGE CONTRIBUTION

MINERAL % OF INDIA’S PRODUCTION

Wollastonite 100
Jasper 100
Zinc concentrate 99
Fluorite 96
Gypsum 93
Marble 90
Asbestos 89
Soapstone 87
Lead concentrate 80
Phosphate roc 75
Ball clay 71
Calcite 70
Sandstone 70
33
Flaggy limestone 70
Felspar 70

At present about 42 varieties of major minerals and 23 varieties of minor

minerals are being produced in the State. In the field of minor mineral
particularly, of dimensional and decorative stones such as marble, Kota stone, and
sand stone, the State occupies a unique position by contributing about 30% of the
total value of minor minerals being produced in the country.

34
 CHAPTER III

BASIC INFRASTRUCTURE
FACILITIES

35
 CHAPTER III

BASIC INFRASTRUCTURE FACILITIES

Infrastructure is an essential input for development. The

prosperity of any economy depends directly upon the development of
agriculture and industry. Agricultural production, however, requires power,
credit, transport facilities etc. Industrial production requires not only
machinery and equipment, but also skilled manpower, management, energy,
banking facilities, marketing facilities, transport services, which include
railways, roads, shipping and communication facilities, etc. All these facilities
and services collectively constitute infrastructure of an economy and the
development and expansion of these facilities are an essential pre-condition
for increasing agriculture and industrial production in a country. The link
between infrastructure and development is not a once for all affairs. It is a
continuous process. The infrastructure facilities available in the State are
discussed as under.

3.1 Power
Realizing the importance of power in overall development of the state,
state is trying to make self sufficient in power. This will not only attract
industrial investment in the state but also provide a great support in the
agriculture production.
The main source of power generation in the state are Kota and
Suratgarh Thermal projects, Dholpur Gas Thermal Porect, Mahi Hydel, Wind
Farms, Bio-Mass, Captive power plants, Bhankra-Vyas chamble, Satpura
interstate partnership projects. Apart from that the state also gets power

36
from Rajasthan atomic power project, Singroli, Rihand, Dadri, Anta, Auriya,
Dadri Gas Plants, Unchahar thermal and tanakpur, Salal, Chamera and Uri
hydel projects from the cental sector.
The installed capacity in the state was 7716.63 MW. The total
installed capacity in the year 2009-10 was 697.45 MW. A step towards
becoming self sufficient in power generation state government announced
to set up six more power plants worth 4780 MW during the upcoming XII
five year plan. The power projects include three super critical plants of 1320
MW eash as extensions of existing power projects at suratgarh, kalisindh
and Banswara projects. Over the three plants would come up at
keshoraipatan (330 MW), Dholpur (330 MW), and Ramgarh (160 MW). The
state government would also come up with a policy on renewable energy to
explore the vast potential of green energy in the state.
In the recent development the Clinton Climate Initiative
(CCI), a programme of US based William J Clinton foundation, has
joined hands with Rajasthan government to set up solar parks in
the state. Each solar park will serve as concentrated zone of solar
development in Rajasthan and will include 3000 to 5000 MW of
solar generation as well as manufacturing over a period of time.
“CCI will provide technical and other support to develop these
parks”. The project envisage an integrated solar city wherein all
the raw materials including glass and panels will be produced by
them, bringing down the cost substantially .
RRVVNL is the prime agency for generation, transmission and
distribution of electricity. The pattern of generation, purchase &
consumption of electricity in the State during the current and proceeding
years is given in the following Table.

37
Table No.- 3.1
Power Consumption Pattern
(Values in MKWH)
S.No. Type of Consumption 2005-06 2006-07 2007-08
1 Domestic / Residential 3525.69 3759.79 4596.83
2 Commercial 1130.95 1257.43 1530.07
3 Industrial 5740.24 7388.67 7880.87
4 Public Lighting 125.23 131.72 -
5 Irrigation,Agriculture & Dewatering 5623.82 6658.24 8136.12
6 PWW 1027.54 1049.33 -
7 Others 758.64 840.07 1641.92
8 Total 17932.11 2035.91 23785.81
Source: Director of Economics and Statistics, Rajasthan.-2008/2009

In the power sector, five companies one each for generation and
transmission in Jaipur and three for distribution each at Jaipur, Ajmer and
Jodhpur are functioning in the State to strengthen the existing infrastructure
and provide better quality of electric supply to the consumers.
Table No.3.2
Availability of Electricity in Rajasthan (2006-07)
Sl. No. Particulars Quantity (2006-07)
1. i) Thermal 16768.482 Million Kwh
ii) Hydro 3242.715 Million Kwh
iii) Gas 358.809 Million Kwh
iv) Electricity Purchase & Central 12084.851 Million Kwh
Allocation
2. (a) Total Electricity available 32454.857 Million Kwh
Source: Statistical Abstract-2009, Rajasthan.
38
 Under Rural Electrification Programme out of 39,810 villages, 36125
villages have been electrified.

3.2 Non-Conventional Sources of Energy

Rajasthan Energy Development Agency (REDA) is the nodal
agency to disseminate useful knowledge in the field of non-
conventional energy and the problems on account of rapid depletion
of non-renewable energy and increasing pollution caused by the use of
traditional energy sources. Rajasthan Govt. has decided that all
micro/medium/small hydel projects in the State Sector would be
implemented by Rajasthan State Power Corporation Ltd. (RSPCL). The
existing 11 projects of Rajasthan Vidyut Vitran Nigam Ltd. With a total
capacity of approx. 21 MW would be transferred to RSPCL.
In the recent development the Clinton Climate
Initaiative (CCI), a programme of US based William J Clinton
foundation, has joined hands with Rajasthan government to
set up solar parks in the state. Each solar park will serve as
concentrated zone of solar development in Rajasthan and will
include 3000 to 5000 MW of solar generation as well as
manufacturing over a period of time. “CCI will provide
technical and other support to develop these parks”. The
project envisage an integrated solar city wherein all the raw
materials including glass and panels will be produced by
them, bringing down the cost substantially .

39
3.3 Water
Limited availability of ground and surface water and geographical
diversities make the availability of clean and safe drinking water difficult.
Rajasthan is primarily a water starved state. Its dependency on external
sources of water is enormous. The state’s economy is heavily dependent on
the rain, however ecological changes have affected the monsoon and the
state cannot just depend on monsoons any more. With demand for water
constantly increasing, the government is implementing a number of
schemes for providing potable water, both, in rural and urban areas.
Conservation and proper utilization of water is on top priority of the
state government. The state government has set aside Rs. 777.58 Crore for
water related schemes in the state. It is going to announce new water policy
the state government is ensuring that Bisalpur water would reach tonk and
ajmer households soon. Fifteen districts would come under the Asian
Development Bank Sponsered water improvement scheme. The government
has earmarked Rs.1515 crore for providing drinking water in 61 smaller
towns, 900 scheduled caste settlements and 2627 villages. Rs.80 Crore
would be spent on various drinking water schemes from the calamity relief
fund. The government also plans to complete 10 big drinking water projects
which would directly affect rural people of Jhalawar, Udaipur and Dholpur.
The Ongoing transmission system (Chambal-Bharatpur scheme) would be
completed in this year that would enable the government to supply fresh
water in Bharatpur. According to the State Government, the Centre has re-
sanctioned the last year’s Rs.508 crore under the National Rural Drinking
Water Programme and with that the State Government would have an
additional Rs.1,100 crore for pushing the water-related schemes in the
State. Sources in the government said that over 35,000 hectares would be

40
 covered for orrigation by completing various bigger and smaller projects,
including Indira Gandhi Canal project within a year. Under the Centre’s
Accelerated Irrigation Benefit Programme, the State Government would get
Rs.952 crore which would be spent on repairing various feeder canals.
Projects like Narbada Canal, Sidhmuk, Mahi and Bhainsa Singh would be
completed in the next one year, providing relief to millions of farmers.
Renovation of 40 existing ponds in Nagur was also announced to expand the
irrigation base in the district.

3.4 Transport and Communication.

If agriculture and industry are regarded as the body and bones

of the economy, transport and communication constitute its nerves
which help the circulation of men and material. A well developed
network of transport and communications is the demand of time for
rapid economic development

3.4.1 Roads

Road is a harbinger of over all development. Roads lead to

progress. It is one of the most important constituents of infrastructure.
It gives access to the unreachable population. For any state that to
prosper, road has to be in order so that administration and
oppourtunities can reach there. Recognizing that roads are the arteries
of modern development, the government has launched several road
development projects and spent Rs. 2397.19 crore in road
development across the state during last year. The state government

41
has decided to strengthen and modernize a road network of 15000 kM
in next five years. It includes state highways and district roads. The
government has also decided to carry out plantations on both sides of
the roads under the NREGS scheme. Apart form that it has earmarked
a budget of Rs. 220 Crore and Rs. 111 Crore for the renovating and
strengthen the Jaipur-Bhilwara and Bhilwara-Bundi state highways
respectively. Under the rural Infrastructure development fund (RIDF),
the state government expects to complete the renovation and
modernization of 2800 km roads with an expenditure of Rs.270 crore.
The state government has also identified 11 road projects to be
executed under PPP model through VGF (viability Gap Funding) . it will
incur a cost of Rs. 3445 crore to build a national highway network of
1378 KMs. The six laning of the 225 KMs Jaipur- Gurgaon national
highway has been started. It will cost Rs. 1897 Crore to the
exchequer.
Similarly the state government has put a special emphasis on
the road transport as rail link is not present in remote areas. The state
owned Rajasthan State Road Transport corporation (RSRTC) has
managed to run a total of 4459 vehicles covering a total road length of
47.25 Crore kms. The fleet utilization of the corporation is an
impressive 94%. Against the target of , 650 new buses replacing the
old buses ,247 new buses were included during the 2009-10. With
improved rural connectivity, the vehicle registration has also surged in
past few years. Details of the registered vehicle is given separately.
The density of roads per hundred sq. Kms. is 54.58 Km in the
State on 31.03.2010 it is below the All India average of 102.92 KMs.
Road length per lakh of population in the state is 307.10 KMs Details

42
 about various category of roads in the State are given in following
Table.
Table No.3.3
Road lengths in the State (in KMs.)
Sl. No Item 31.3.2009 31.3.2010
A. PWD Roads
1 National Highways 5714 5722
2 State Highways 11751 11758
3 Major District Roads 7658 7673
4 Other District & Village 24424 24418
Roads
5 Rural Roads 137259 138239
Total (A) 186806 187810
Source-Rajasthan, Economic Review-2008-09/2009-10

Under the prime minister rural road connectivity, 151 villages, having
population 250 and above was connected. Under the RIDF-15, renovation
and modernization of roads, 713 Kms of road is completed.

3.4.2 Vehicles on Road

The total number of motor vehicles registered with the Transport

Department of the State was 63.51 lakhs by the end of December-2008,
increased to 69.93 lakhs in December-2009, increased by 10.11%.
Registration of vehicles in the state up to December-2009 is as under.

43
Table-3.4
Registration of vehicle in the state
S.No. Type of Vehicle December-2008 December-2009
1 Motor Rickshaw 90 90
2 Two Wheelers 4614532 5102890
3 Auto Rickshaw 87639 94760
4 Tempo
(Loading) 38483 42081
(Passenger) 13807 16038
5 Car 388302 440347
6 Jeep 180198 197546
7 Tractor 561141 596838
8 Trailor 66600 68775
9 Taxi 57800 65690
Buses & Mini Buses 68426 72217
10 Truck 262906 282432
11 Other Vehicle 11820 13844
Total 6351744 6993548
Source-Rajasthan, Economic Review-2008-09/2009-10

Registration of vehciles

6000000
5000000
number

4000000
3000000
2000000
1000000
0
)
w

or

ck
ha

i
ar
in
ha

ax
ct
ad

ru
ks

T
ks

ra

T
o
ic

ic

T
(L
rR

R
o
o

ut
ot

A
M

type of vehicle

Dec-08 Dec-09

44
3.4.3 Railways

Railways are considered the life line of an economy. In this desert

State too, Railways have creped in slowly to make their presence felt and
give a fillip to the State’s economy. There are 3 Gauges prevalent although
a plan to convert into a Unigauge system is under way. The ‘Palace on
Wheels’ is Rajasthan’s claim to fame in railways. Rajasthan has 5683 Kms.
of Rail-length which was about 9 per cent of the total track of the country,
of which 3885 Kms Broad Gauge, 1710 Kms. meter gauge and 86 Kms. was
narrow gauge. The following table gives an overall picture of the railway
scenario in Rajasthan.
Table No. 3.4
Rail Gauge Length ( in Kms.)

S.No. Particular of Gauge 2005-06 2006-07 2007-08

(Length in (Length in (Length in
KM) KM) KM)
1 Broad Guage 3550.69 3840.87 3885.47
2 Metre Gauge 2200.54 1983.46 1710.78
3 Narrow Gauge 86.76 86.76 86.76
Total 5837.99 5911.09 5683.01
Source: DES Rajasthan-2008/2009

Due to conversion of gauge some route of meter gauge is being Changed to

the broad gauge. The process of gauge change is under progress.

45
3.4.4 Airways.

In the modern times, where time has become a severe constraint,

people want to travel at the minimum time covering the farthest of
distances. It is then that the need for air-travel arises. Rajasthan has four
airports namely.
Jaipur- having international airport Connecting Kuwait, Saudi Arab and other
international destinations. It also connects Bombay, Delhi, Aurangabad,
Kolkatta, Indore, Jodhpur, Udaipur and other domestic destinations of the
country.
Jodhpur - Connected with Delhi, Jaipur, Udaipur and Bombay.
Udaipur- It is connected to Bombay, Aurangabad, Jaipur, Jodhpur
and Delhi.
3.4.5 Communications.

The state offers sound infrastructure and well developed

information and communication facilities. With high penetration rates in both
the cellular phones and the internet market, Rajasthan today boasts a
competitive business environment for both fixed network and value added
carriers and service provider while providing high quality service to
consumer and business. By the end of March-09, there were 10319 Post
Offices, 486 Telegraph Offices, 2334 Telephone Exchanges and 946839
Public Call Offices (including Local PCO, STD PCO and Village PTS). There
are 4721530 numbers of working connections of all types and the number of
connections is growing immensely with each passing day, leaving no district
untouched under its network (with internet facility) howsoever remote it
may be.

46
3.5 Financial Institutions

To accelerate the pace of development banks and other financial

institutions have a very vital role to play in providing resources for
generating additional economic activity and incomes for the people.

3.5.1 State Financial Corporation (SFC)

Rajasthan Financial Corporation (RFC) was constituted in the year

1956, under the SFCs Act-1951, with the prime objective to extend long tern
financial assistance to tiny, small and medium scale industrial units in the
state. Since then RFC has come a long way, adopting and attuning its
activities to the changing industrial needs and market demands. RFC
provides loans to industrial concerns for the purpose of industrial land,
construction of factory building and acquisition of plant and machinery,
working capital, bridge loan etc.
The Rajasthan Financial Corporation (RFC) is providing term loan for
establishment, expansion and renewal of industries and mining activities,
transport and hotels in the State. Through simplified and more liberal
procedures, the Corporation sanctioned loans and disbursed. RFC is also
playing an important role as an agent on behalf of the State Govt. for
providing investment subsidies and other concessional facilities to industries
in the State. An important policy decision was taken to make effective
recovery of loans by allowing concession on balance of loans in case of one
time settlement.
RFC provide loans for specified entrepreneurs e.g. assistance to
qualified professional, scheme for financing to medical practitioners for

47
 purchase of medical / diagnostic equipments, loans for hospitals/ nursing
homes, scheme for financing for purchase of land & building and
construction thereon, scheme for commercial complexes/ housing
complexes/ flats , scheme for hotels / tourism related activities, financing for
guest houses, saral scheme for SME sector.

3.5.2 Banking in Rajasthan

Finance is the life line of the industry. A wide banking network and
hassle-free milieu is pre requisite for fostering industrialization. Entire
banking scenario is changing considerably in the today’s era and banks are
adapting to more customers oriented and free market approach to cope up
with backdrop of globalization. Besides, State Financial Corporation
nationalized scheduled commercial banks RRBs and Cooperative banks play
an important role in providing credit facilities to the MSME sector. Total
number of branches of all banks in the state cane be seen from the
following table.
Table -3.5
Name Branches Braches
(up to December-2009) added during
the year
Rural Semi-urban Urban Total
Commercial Banks 1000 827 1156 2983 122
RRBs 809 181 52 1042 2
Cooperative Banks 189 287 85 561 3
Total 1998 1295 1293 4586 127
Source:- SLBC, Rajasthan March-2010

Aggregate Deposits and Gross Bank Credit and no. of branches of All
Scheduled Commercial Banks – September- 2009 is given below.

48
Table 3.6
Aggregate Bank deposit and credit and no. of branches
(Upto-September-2009)
India Rajasthan
2007 2008 2009 2007 2008 2009
1 RRBs Banks 14467 14735 15141 1012 1024 1041
(In No.)
Deposit 87026 101495 122410 5452 6540 7869
(In Crore
Rs.)
Credit 53759 57706 72136 3760 4147 4981
(In Crore
Rs.)
2 SBI & others Banks 50898 53692 56574 2231 2367 2476
(In No.)
Deposit 2076735 2459458 3046720 49498 57672 74427
(In Crore
Rs.)
Credit 1511449 1828407 2138516 43584 49604 63440
(In Crore
Rs.)
3 International Banks 259 267 281 5 5 6
Banks (In No.)
Deposit 181843 199945 229242 311 393 445
(In Crore
Rs.)
Credit 148165 184713 157652 340 423 802
(In Crore
Rs.)
4 Other Schedule Banks 7389 8375 9094 387 436 466
Banks (In No.)
Deposit 595375 663387 703147 11286 12666 14787
(In Crore
Rs.)
Credit 443929 495054 513593 7203 8037 8797
(In Crore
Rs.)
5 Total Banks 73013 77069 81090 3635 3832 3989
(In No.)
Deposit 2940978 3424286 4101518 66546 77272 97528
(In Crore
Rs.)
Credit 2157303 25658881 2881898 54886 62211 78020
(In Crore
Rs.)
Source- Economic Review-2008-09/ 2009-10, DES, Rajasthan,

49
 State constitutes only 5% of the nations banking offices and contribution in
deposit and credits stands only at 2.6 and 2.4 % which is a very meager
contribution in comparison of state’s size. Rural banking is in good form as
compared to urban as more than 52% of offices are located in rural areas and its
contribution stood at approx 5% in country figure against a low urban
contribution. The salient feature of the performance of this sector can be
summarized in following parameters.

Table 3.7
Key Business Parameters as on 31.12.2009
Parameters December-2009 Growth during the RBI bench
year mark
Total Deposits 110837 12.61%
Core Deposits 107653 19.97%
Total Advances 94271 15.96%
C:D Ratio 87.57% 60%
Total Priority Sector advance 47298 9.91%
% age of PS advance to total 50.17% 40%
advance
Total agriculture advance 26821 11.04%
% age of agriculture advance 28.45% 18%
to total advance
Total advance to Weaker 11432 10.99%
section
%age of weaker section 12.13% 10%
advances to total advances
Total advances to minority 2566
community
%age of minority community 5.43%
advances to total PS advances
Source:- SLBC, Rajasthan, March-2010

Till December- 2009 there were 4586 branches in the state whose total
advances was Rs. 94271 crores of which 47298 crores went to priority sector.
50
Banking in Rajasthan is on the sound footing in facilitating all basic banking
activities as also discharging social obligation. Approximately there is a bank
branch catering to the needs of 1800 persons and covers 86 Sq Km area in the
state. Total no of persons facilitating by the bank branch is 16623 persons.
Banking sector is doing well in the state and advances to the priority sector of the
total advances are 50.17%, is above than RBI bench mark of 40%. Advances to
the agriculture sector, weaker section is also above the RBI benchmark i.e. 18%
and 10%.

Table 3.8
Institutional Break up of Social Banking Parameters
As on December-2009

Parameters Com. Banks RRBs Cooperative Banks Ratio for

Banks
Credit Deposit Ratio 89.72 64.48 85.83 87.57
% of P. S. Adv. To 44.22 85.25 99.36 50.17
Total Adv.
% of Agri. Adv. 20.95 74.52 88.88 28.45
% of W. Sec. Adv. 11.02 34.3 8.48 12.13
Source:- SLBC, Rajasthan, March-2010

A gloomy picture spring out from the above data that priority sector lending
has been logged to 54% in the state that is at higher side from stipulated limit of
40% RRB’s contribution in priority sector lending is very high. Rear side of this
picture is not as encouraging as Bank credit to industry in the state is not at par
with the some of industrially advanced states.

51
Credit flow to SSI:

Growth of MSME sector has got utmost importance because this is only
sector having feature of massive employment generic, low investment and higher
productivity. Timely and adequate credit flow inter-alia is prime necessity for
thriving of MSME sector. Envisaging multifaceted vulnerability of MSME sector, this
sector has been made an integral part of priority sector advance and 40% of
banks net credit is earmarked for P.S advance. Rajasthan performance has been
satisfactory on the P.S advance though contribution of MSME sector.

Table 3.9
List of Specialized SSI Branches of Banks in Rajasthan
(As on March-2009)
S.No. Name of the Banks No. of Spl. SSI Branch
1 State Bank of Bikaner & Jaipur 13
2 State Bank Of India 62
3 Bank Of Baroda 08
4 Canara Bank 01
5 Dena Bank 02
6 Punjab national Bank 04
7 Union Bank Of India 06
8 The Bank Of Rajasthan Ltd. 06
9 Rajasthan State Cooperative Bank 01
Total 103
Source:- SLBC, Rajasthan, March-2010

52
Table 3.10
List of Lead Banks in the State of Rajasthan.
Lead Banks Districts
Bank of Baroda State Bank of Bikaner and Jaipur.
1. Ajmer. 1. Bikaner
2. Bhilwara 2. Barmer
3. Banswara 3. Jalore
4. Bundi 4. Pali
5. Churu 5. Jaisalmer
6. Chittorgarh 6. Sirohi
7. Dungarpur 7. Hanumangarh
8. Jhunjhunu 8. Rajsamand
9. Sawai Madhopur 9. Udaipur.
10. Tonk
11. Karauli
UCO Bank Central Bank of India
1. Jaipur 1. Baran
2. Jodhpuir 2. Jhalawar
3. Nagaur 3. Kota
4. Dausa
Punjab National Bank Oriental Bank of Commerce
1. Alwar 1. Sriganganagar
2. Sikar
3. Dholpur
4. Bharatpur

3.5.3 MSME-Development Institute Jaipur

MSME-development Institute (earlier SISI), Jaipur was set up in Jaipur

on 14th January, 1958. The Institute is engaged in promotion and
development of MSME sector in the State of Rajasthan. This is one of 30
such Institutes set up by Ministry of MSME (earlier M/o. SSI), Govt. of India,
all over the country. The services provided by the Institute include techno-
economic and managerial services and basic inputs in the form of technical
53
guidance required to set up new units and to run existing units by improving
quality and productivity. Technical expertise is available in various disciplines
like Mechanical, Metallurgical, Chemical / Rubber, Plastics/Food, Glass &
Ceramics, Electrical/Electronics and Leather/ Footwear to guide the
entrepreneurs.
The Institute also coordinates and implements the policies and
Programmes of the Central Govt. The Important functions and consultancy
services provided by the Institute to the MSME sector in the State are as
follows.

- Consultancy to prospective entrepreneurs in identification/ selection of

product, selection of appropriate technology, manufactures process,
selection of suitable plant and machinery etc.
- Consultancy to existing units in quality control and standardization,
new technology and assistance in marketing the products.
- Preparation of State Industrial Profile.
- Preparation of District Industrial Potential Surveys.
- Entrepreneurship Development Programmes.
- Entrepreneurship & Skill Development Programmes
- Management Development Programmes.
- Industrial Motivational Campaigns.
- Business Skill Development Programme
- Cluster Studies
- Skill Development and Computer Training Programmes.
- Awareness Programmes on Energy Conservation and Pollution Control.
- Awareness programme on CLCSS/ Bar Code/ IPR / WTO and other
specified subjects.

54
 - Awareness Programmes on Quality Control and ISO 9000.
- Ancillary Development.
- Marketing and Export Promotion.
- Training Programme for PMEGP beneficiaries.
- Sample Survey of registered/ unregistered MSMEs.
- Coordination with Directorate of Industries, DICs, Banks and
Departments related to industrial development in the State.
- Common Facility Services to small scale units in Machine Shop, Heat
Treatment on CNC Wire Cut Machine.
- Support the entrepreneurs for participating in ITFs and other
exhibition.

3.5.4 MSME-Testing Station- Jaipur (FTS).

Government of India under sixth five year plan established field testing
Station (FTS) at various places in the country with an objective to provide
testing facilities to MSME (earlier SSIs) to enable them to manufacture the
goods confirming to Indian or other standard specifications and also provide
third party assurance to various Govt. / private agencies. In October-2006,
name of the Field Testing Station changed as MSME-Testing Station. This is
under the control of Regional Testing Centre (N.R.), New Delhi for providing
testing facilities to the MSME units in the State.

3.5.5 MSME Technology Development Center - Hand Tools

A Hand Tool Design Development and Training Centre, has been set
up at Nagaur with a view to develop Hand Tools Industry in the State. Main

55
 functions of this Centre are Consultancy, Advisory Extension Services and
Technical expertise in the field of Hand Tools from the stage of selection of
product/product groups to the manufacturing stage as well as marketing,
common facility service to SSI industries in the region with special emphasis
on Hand Tools manufacturing industry, Testing and Quality Control of
industrial products with special emphasis on Hand Tools, Tool Room
Facilities for Dies, Tools, Jigs and Fixtures needed by the Hand Tool
manufactured in particular, development of information and dissemination
and conducting Symposia, Seminars and Workshops for the benefit of Hand
Tool manufacturers, traders and exporters.

3.5.6 Industrial Finance Corporation of India (IFCI)

The IFCI was set up in July, 1948 under a special Act to provide the
much needed finance for large-scale industries which were apathetic or
found inadequate earlier. IFCI works together with other public sector
financial institutions. Industrial Development Bank of India (IDBI) which was
established in July, 1964 provides direct loans to industrial concerns,
refinance of industrial loans and export credits, rediscounting of bills,
underwriting of and direct subscription to shares and debentures of
industrial units and direct loans for exports.

3.5.7 Industrial Reconstruction Bank of India (IRBI).

The Govt. of India had set up the Industrial Reconstruction

Corporation of India (IRCI) in April,1971 which was converted to the
Industrial Reconstruction Bank of India (IRBI) in March,1985 to function as

56
 the principal all India credit and reconstruction agency for industrial revival,
assisting and promoting industrial development and rehabilitating industrial
concerns.

3.5.8 Small Industries Development Bank of India (SIDBI).

The SIDBI was set up by the Government of India under a special Act
of the Parliament in April, 1990 as a wholly-owned subsidiary of the IDBI.
SIDBI has taken over the outstanding portfolio of IDBI relating to the small
scale sector. Over the years, SIDBI has put in place financing schemes
either through its direct financing mechanism or through indirect assistance
mechanism and special focus Programmes under its P&D initiatives. In its
approach, SIDBI has struck a good balance between financing and providing
other support services.

As an apex institution, SIDBI makes use of the network of the banks

and state level financial institutions, which have retail outlets. SIDBI
supplements the efforts of existing institutions through its direct assistance
schemes to reach financial assistance to the ultimate borrowers in the small
scale sector. Refinancing, bills rediscounting, lines of credit and resource
support mechanisms have evolved over the period of time to route SIDBI's
assistance through the network of other retail institutions in the financial
system. SIDBI has entered into Memoranda of Understanding with many
banks, governmental agencies, international agencies, research &
development institutions and industry associations to facilitate a coordinated
approach in dealing with the issues for development of small scale
industries.

57
 The industrial units in the State of Rajasthan get financial assistance
from the national level financial institutions as IDBI, IFCI, ICICI, SIDBI, IRBI
and other nationalized and private banks in a big way.

3.6 RIICO

Rajasthan Industrial and Investment Corporation Ltd., (RIICO) is a

government company, wholly owned by government of Rajasthan, India.
RIICO is the apex organization for fostering growth of industrialization in
Rajasthan. RIICO provides industrial lands and Varity of technical inputs, by
way of technological and managerial services, like relevant technical
information, project briefs, project profiles, project reports, techno-economic
feasibility reports, market surveys, financial and managerial consultancy and
even diagnostic studies for projects rehabilitation. RIICO also provide
financial assistance in project loan, equipment finance scheme (EFS) ,
working capital term loan, medium term multi purpose loan. Flexi loan for
hotels, hospitals and nursing homes, medium term loan against
securitization of fixed assets etc.
Rajasthan Industrial and Investment Corporation Ltd., (RIICO)
acquires land for development of industrial areas and parks at different
places in the State depending upon the potential of industrial development.
RIICO has so far developed 322 industrial areas where around 27000
industries are in production.

58
3.7 Bureau of Industrial Promotion (BIP).
The Bureau of Industrial Promotion (BIP) is the Investment
Promotion single window Agency of the State for clearing all medium and
large scale investment. BIP is assists the investors looking at business
opportunities in Rajasthan in every possible way. Through its concerted
efforts, it has created a favorable environment and attractive destination
for investors in the State. It has also successfully persuaded several very
prestigious companies to set up manufacturing units in the State.
On the recommendation of the BIP, Economic Development
Board has been formed to act as a think-tank for the State. The board
will also provide direction for increasing private participation in economic
development. It will support short term measures for economic
transformation and advice in long term plans for increasing the
competitive edge of the State. It helps in identifying investment
opportunities, providing access to information that is critical to setting up
of project, assisting translating of investment possibilities into concrete
investment proposals, assisting site selection and obtaining infrastructural
facilities and interfacing with government department for required
clearances.

3.8 Social Infrastructure.

Infrastructure facilities are usually referred to as economic and social

overheads. The economic overheads part have already been dealt under the
headings of Energy, Transport and Communications, Science and
Technology, Banking, Finance and Insurance, and the social overheads
include, health and hygiene, housing and education.

59
3.8.1 Human Resource Development (HRD)

Human resource is the most important of all resources. It is very true

that human beings are not only instruments of production, but also ends in
themselves. Education is one of the major aspects in HRD.
Rajasthan is educationally backward with 60.4% rate of literacy as per
2001 census below the all India literacy rate is 64.8%. Rajasthan was
standing at the 2nd last rank, only ahead of Bihar in the country. Female
literacy is 43.9.
At present, 51719 Pre Primary and Primary Schools, 49669 upper
primary schools and 17370 secondary and senior secondary schools in the
state during 2008-09. Enrollment of students in the same period is 94.37
lakhs in pre primary and primary school and 30.48 lakhs in upper primary
and 40.84 lakhs in secondary and senior secondary schools. State
government is more concerned with the education providing more budget to
this sector.

3.7.2 Higher Education.

Rajasthan is a growing education hub of the country. Education is the

base of growth and development. Public Private Partnership (PPP) mode of
education is growing.
On the all Indian level ratio of college and population is 1:77000, where as
in Rajasthan it is 1:54750. At present 14 Universities (including 2
Agricultural Universities), 08 Deemed University are in the state and 21
private universities were already approved by the state Government some of

60
 them were also stated. Various types of courses and institutions are taking
place in the changing economic scenario. In the degree courses there are
1042 no of total colleges in state, in 1032, 126 no of government colleges,
15 degree law colleges, and 71 self sufficient colleges and 808 colleges are
private in sector. Total 8.50 Lakhs students enrolled in these colleges. The
picture of the technical medical institutions can be seen from the following
tables;
Table-3.11

No. of institutions and seats in Technical Courses

Number of Institutions Number of Seats
Govt Pvt. Total Govt Pvt. Total
College colleges College colleges
Engineering 11 67 78 6403 22045 25447
MCA 7 23 30 270 1410 1680
MBA 10 84 94 570 5430 6000
Polytechnique 27 31 58 4840 6770 11610
ITI 134 532 666 20040 46866 66906
Source: Economic Review-2008-09, DES, Rajasthan

Table- 3.12
Number of Institutions related with Medical Courses (2009-10)
Govt College Pvt. colleges Total
MBBS 7 2 9
Dental 1 10 11
B.Pharma -- 42 42
M.Pharma --- 5 5
D.Pharma 1 28 29
Para Medical 4 2 6
Source: Economic Review-2009-10, DES, Rajasthan

61
3.7.3 Medical and Health.

Medical & Health services are being provided in the State

through a net work of Govt. institutions at various levels. Details of the
position of Allopathic Medical institutions are shown in the following
Table.
Table No.3.13
Details of Medical Institutions
S.No Institutions Numbers (2008-09)
1. Hospitals 127
2. Community Health Centre 367
3. Dispensaries 199
4. Primary Health Centers (urban & Rural) 1540
5. Maternity and Child Welfare Centers 118
6. Aid Posts (Urban) 13
7. Sub-Centers 10951
8. Inpatient Beds 43779
9. Doctors 6950
Source: DES, Rajasthan-2009

A detail of the position of Ayurvedic / Unani / Homeopathic and

prakritik Medical institutions can be shown in the following Table.
Table No.3.14
Details of Medical Institutions (other than Allopathic)
S.No Institutions Numbers (2008-09)
1. Hospitals 114
2. Dispensaries 3841
3. Mobile Units 14
4 Inpatient Beds 1346
Source -DES-Rajasthan-2009

Medical tourism is one of the stated priorities of the government. It is

looking at making the state an attractive destination for the attractive

62
destination sector, especially those who might be interested in setting up
hospitals, nursing homes and even institutes of medical education.
The medical policy includes encouraging other parallel and recognized
streams of medicine such as Ayurveda, Homeopathy and naturopathy. The
state government is focusing on the medical sector to promote health status
of the people specially for the weaker section of the society. A number of
initiatives have been taken to bring them into the main stream.
The state government also implemented the National Rural health
mission (NHRM) effectively in Rajasthan. For the first time in 2009-10 four
comprehensive volumes of the state programme implementation plan (SPIP)
has been prepared that includes the district PIPs for 33 district and block
PIPs for 237 blocks
The aged, physically challenged and widows in the state will now get
free treatment under the chief minister’s BPL life saving fund. As medical
expenses are a major concern for most people in these categories as income
sources are limited and treatment cost continues to rise, now they will get
benefits of free medication and treatment at all government hospitals in the
state. The government is also decided to set up special geriatric care centers
at all district hospital. It will also expand the services under the national
rural healthcare mission and Rajasthan health system development project.
The government has approved training for the members of 43000 village
health committees in the state. The government has also decided to
outsource the facilities for diagnosis at the district hospitals under the public
private partnership scheme.

63
 CHAPTER – IV

INDUSTRIAL SCENARIO
IN RAJASTHAN

64
 CHAPTER – IV

INDUSTRIAL SCENARIO IN RAJASTHAN

Considered a backward state in terms of industrial development

Rajasthan is all set to change its image. Although agriculture continues to be
the backbone of the state in the terms of economic activity; manufacturing
construction and mining are fast growing activities. The economy of the
state has shown a structural shift with the manufacturing sector making a
considerable contribution to the net state domestic product (NSDP). In
terms of production value, the textile industry, dominates the large and
medium category of industries. This is followed by industries catering to
agro-based, food and allied products; cement and cement products:
chemical gases , lubricants and plastic; heavy machinery ; metal allied
products, automobile parts and machine tools parts; electrical and
electronics –related products; minerals , stones and lime; drugs and
pharmaceuticals ; ceramics and glass wares; and leather and footwear. The
state is almost the sole producer in the country of certain minerals like
wollastonite, zinc and copper. Besides this, it is also a leading producer of
crops such as mustard, bajra, barley, maize, cotton and spices. The is also a
huge population of livestock that sustains the livelihoods of several
communities across the state
Rajasthan is a fascinating state with an extremely rich cultural
heritage. It is considered one of the top regional economies today. In 1999-
2000 State was rendered as rapidly growing state I the country. With a
compounded annual growth rate of over 9.0%, it ranked alongside states
like Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu.

65
 It is the vision of Government of Rajasthan to be a developed state
where people get many opportunities to achieve economic prosperity and
happiness. The govt. has taken a firm and effective steps to provide an
environment conducive to economic and social growth. These steps included
formulation of investment – friendly policies; create a positive environment
for investment into industrial development and to ensure prosperity of the
state.
Infrastructure creation has been one of the priority areas of the
government, not only for industry but also for common person. Industrial
areas with ready to use base with supportive infrastructure facilities have
been set-up. In the arid and semi arid areas, water avalilibility has been
stepped up. The extension of the Indira Gandhi Nahar Pariyojana, one of
the largest irrigation systems in the world, turned the desert districts of the
state into the green belts of prosperity.
All parts of the state are connected by road and rail barring some
areas where the broad gauge rail network is yet to be set up. There is well
established inter state road network connecting all the important towns of
Rajasthan with rest of the country. Jaipur, Jodhpur and Udaipur are
connected by air as well as rail to delhi, Mumbai and Ahmedabad. For cargo
movement, there are inland container depots at Jaipur, Jodhpur, Kota and
udaipur. Bhiwadi near to Alwar and the textile town of Bhilwara will have
their own depots. Several agencies are working in the state to achieve the
goal of rapid industrialization . The Buerue of Investment Promotion
provides all kinds of investment related information to medium and large
scale industries as well as NRI investors and ensures quick resolution of
their problems. It is the secretrait for Rajasthan Investment Promotion
Board headed by the chief Minister. Forward looking investment and

66
industrial policy for the state is also in the process of formulation. The
industrial areas developed by the Rajasthan state industrial development
and investment corporation (RIICO) are self sufficient in that they have
water, power, road network shops telephone and fax facilities, housing and
recreation facilities
Rajasthan today is rapidly emerging as one of the most attractive
investment destinations in the India. Doing business in Rajasthan has
become an attractive and exciting preposition. Wide ranging economic
reforms availability of low cost Labour, access to cheap and Varity of raw
material and intermediate products, a large domestic market, a mature
financial sector and political stability are some of the factors, which have
increased investment flows. Rajasthan is one of the first states to move on
the central government’s new liberalization policies, Rajasthan have a very
investor friendly climate.
Having already achieved a healthy economic growth between 2000-01
and 2006-07, Rajasthan is poised for robust development. During this
period, the gross state domestic product at constant prices grew at a
compound average rate of over 6% per annum. State aims to achieve an
even higher average growth rate in the coming years. Across all sectors, and
intends to launch itself as a model state for infrastructure development
where governance is citizen sensitive.
Rajasthan has been marching ahead in terms of industrialization. Due
to consistent support and growth strategy adopted by the State
Government, the number of small-scale units is increasing year after year.

67
4.1 Large and Medium Scale Industries.

As on 31.3.2009, Rajasthan had 270 Large and Medium scale units, in which
Rs.37508.46 Crore were invested and 1.28 Lakhs of employment was generated
from these industries.
The information about number of units, employment and investment as on
31st March 2009 region wise is given in the Table below.
Table No.4.1

S.No. Name of the District Registered Employment Investment

Units (Nos.) (Nos.) (Rs.in lakhs )
Ajmer Division
1 Ajmer 9 4084 3025.82
2 Tonk 6 1765 311.37
3 Bhilwara 38 25068 3098.91
4 Nagaur 3 430 189.87
Total 56 31347 6625.97
Bharatpur Division
1 Bharatpur 1 2735 81.35
2 Dhoplur 2 690 43.72
3 Alwar 74 17561 6032.82
4 Karoli 0 0 0
Total 77 20986 6157.89
Bikaner Division
1 Bikaner 1 462 12.71
2 Churu 1 35 11.67
3 Hanumangarh 2 1476 22.09
4 Sriganganagar 8 4262 5517.95
Total 12 6235 5564.42
Jaipur division
1 Jaipur 27 7653 1394.15
2 Dausa 0 0 0
3 Jhunjhunu 2 3078 391.93
4 Sikar 4 1593 124.14
Total 33 12324 1910.22
68
Udaipur Division
1 Udaipur 23 8828 849.12
2 Chittorgarh 7 5174 3139.92
3 RajSamand 3 3818 534.67
4 Dungarpur 4 3628 287.10
5 Banswara 7 11948 117.03
Total 44 33396 4927.84
Jodhpur Division
1 Jodhpur 12 3406 660.63
2 Pali 5 4175 1075.48
3 Sirohi 8 4172 3930.81
4 Jalore 2 133 13.87
5 Barmer 0 0 0
6 Jaiswlmer 0 0 0
Total 27 11886 5680.79
Kota Division
1 Kota 12 6375 5283.19
2 Bundi 4 2090 247.47
3 Jhalawar 1 3535 343.28
4 Baran 2 292 731.94
5 Sawai Madhopur 2 90 35.82
Total 21 12382 6641.7
Grand Total 270 128556 37508.83
Source : Commissionerate of Industries, GOR, Jaipur

No of units separately registered under medium and large scale.

Type of No. of Registered Cumulative Cumulative
Industry (Numbers) investment employment
(Rs. in crores) (persons in No.)
Medium Scale 64 1200.69 11029
Industry
Large Scale 206 36307.77 117527
Industry
Eight districts namely Barmer, Bikaner, Churu, Dausa, Jaisalmer,
Jalore, karoli and Pratapgarh has yet to see any Large unit in its periphery.
Though fourteen districts having 5 or less than 5 large-scale industry. Only
Alwar (with Bhiwadi) and Udaipur having more than 10 medium scale units
16 and 11 respectively.
69
 Alwar & Bhiwadi with 74 units’ accounts for 25% of large and medium
scale industries followed by Bhilwara and Jaipur district 38 and 27
respectively. 270 large and medium units having investment of Rs. 37508.83
Lakhs, reported as on 31.3.09. District-wise details of number of registered
large and medium units, employment, and investment are given in the
above table 4.1
4.2 Micro & Small Industries
Table No.4.2
Year-wise information of MSMEs

Year Registered MSEs Cumulative investment

Cumulative
(Cum. Lakh numbers) ( Rs. in crores) employment
(persons in lakhs)
2006-07 2.91 5918.63 11.51
2007-08 3.05 7397.88 12.35
2008-09 3.19 8888.20 13.16
It is evident from the numbers inscribed into the table above that number of
registered units; employment and investment are growing over the year. Annual
growth rates for number of registration and employment are pegged at
approx.4% graph.
investment and employment details

year
10000 13.5

8888.2
9000 13.16
13
8000
7397.88
cumulative investmentin crore

7000
12.5
employment in lakhs

5918.63 12.35
6000

5000 12

4000

11.51 11.5
3000

2000
11

1000

0 10.5
2006-07 2007-08 2008-09
year

Cumulative investment Cumulative employment

70
 Jaipur district with 37829 units has maximum number of SSI units in the
state, it alone accounts for more than 10% of state SSI sector. District-wise status
of SSI units is given below.
Table-4.3
District-Wise status of MSMEs
MSMEs As on 31.3.2009
Sr.No. Name of District Registered Units Employment Investment
(Numbers) (Numbers) (Rs. in Lac .)
1. Ajmer 15909 74411 67746.22
2. Alwar 23668 101802 157045.72
3. Banswara 8344 22950 6674.81
4. Baran 2225 6798 2515.41
5. Barmer 5158 24689 12172.95
6. Bharatpur 9502 35275 13294.11
7. Bhilwara 16718 69858 40887.09
8. Bikaner 12638 60728 43495.28
9. Bundi 5005 16004 2767.60
10. Chittorgarh 8311 28944 12692.68
11. Churu 6654 26446 10164.98
12. Dausa 4642 13441 2863.75
13. Dholpur 2993 10318 7166.46
14. Dungarpur 3488 11628 3138.13
15. Hanumangarh 1859 9845 6223.98
16. Jaipur 37829 213096 174075.58
17. Jaisalmer 3522 10576 2640.49
18 Jalore 4701 15210 9145.77
19 Jhalawar 7176 19980 3767.80
20 Jhunjhunu 6421 19649 5463.95
21 Jodhour 22074 101041 71521.82
22 Karoli 1981 6358 1261.57
23 Kota 14989 54556 35892.86
24 Nagaur 19102 65577 39773.33
25 Pali 12120 43558 12460.36
26 Rajsamand 4783 16599 13318.13
27 Sawai Madhopur 7550 22409 4094.22

71
 28 Sikar 7901 29874 10372.46
29 Sirohi 5480 20330 15429.34
30 Sri Ganganagar 9040 49110 19241.80
31 Tonk 9380 37603 8128.54
32 Udaipur 18678 77604 73383.51
Total 319841 1316267 888820.7
Source:-O/o the Commissioner of Ind. GOR, Jaipur

4.3 Annual Survey of Industries (2004-05)

Industries which are registered under factories act of 1948 those employing
10 or more workers in case of power and 20 or more workers in case of not using
power, do submit there annual figures in the annual survey of industries which
throw a light on the registered sector industries in India. ASI estimates for the
state are given in the ensuing table.
Table-4.4
ASI results for Rajasthan
(Value in Lakhs Rs. & Other in numbers)
S.No. DISTRICT No. of Productive Employment Total Gross Dep. GVA by NVA
Factories capital input output Manu.

1 Ajmer 505 127419 12218 140076 199926 11407 59850 48443

2 Alwar 642 413551 38110 662569 909000 25586 246431 220845
3 Banswara 56 18818 6709 53095 46201 3252 (-)6894 (-
)10146
4 Baran 03 2890 183 11369 11982 137 613 476
5 Barmer 146 7489 3489 23408 28067 842 4659 3817
6 Bharatpur 73 5120 1851 37450 37186 331 (-) 264 (-)595
7 Bhilwara 377 162938 33017 351899 471537 13305 119638 106333
8 Bikaner 201 29370 5817 91636 91863 1159 227 (-)932
9 Bundi 40 13772 1021 20466 21774 1086 1308 222
10 Chittorgarh 146 67599 4342 82493 106820 5185 24327 19142
11 Churu 13 2483 599 5797 6463 115 666 551
12 Dausa 12 701 374 3182 2934 35 (-)248 (-)283
13 Dholpur 19 5522 530 15453 17654 641 2201 1560
14 Dungarpur 12 815 2833 16465 18365 750 1900 1150
15 Ganganagar 183 45089 11268 73953 101132 2159 27179 25020
16 Hanumangarh 182 14493 7491 45059 50444 487 5385 4898
17 Jaipur 1110 356199 61684 848568 1000179 23034 151611 128577
18 Jaisalmer 03 357 54 3523 3765 13 242 229
19 Jalore 08 1490 318 4901 11069 108 6168 6060
72
 20 Jhalawar 13 8129 1970 14389 2654 970 (- (-
)11735 )12705
21 Jhunjhunu 12 6942 497 7473 8434 1539 961 (-)578
22 Jodhpur 500 105190 18813 247064 188271 5175 (- (-
)58793 )63968
23 Karuli -- -- -- --- -- -- -- --
24 Kota 91 167592 6877 359132 466050 15778 106918 91140
25 Nagaur 106 17083 3621 29143 10243 1384 816 (-)568
26 Pali 304 86077 8333 83680 29959 7489 32562 25073
27 Rajsamand 110 10308 1296 11532 116242 639 (-)1289 (-)1928
28 Sawai 15 6093 831 10980 10841 264 (-)139 (-)403
Madhopur
29 Sikar 34 6973 1150 13068 19522 284 6454 6170
30 Sirohi 82 142705 5135 77101 122156 10824 45055 34231
31 Tonk 24 7368 2039 9210 11948 398 2738 2340
32 Udaipur 260 79320 10594 119326 118389 4776 (-)937 (-)5713
Total 5282 1919895 253064 3473460 4241070 139152 767610 628458
Source: Statistical Abstract, Rajasthan- 2009

It is clear from the data given above that 5282 industries registered under
this act providing employment to 253064 person. Total gross value added by the
manufacturer is 767610.

4.4 Mineral based industries:

4.4.1 General Geology: Geologically Rajasthan comprises rocks from

oldest Archean rocks to recent alluvium formations. The oldest formations are
known as Banded Gneissic Complex exposed in central and southern
Rajasthan. The Aravalli hill range dividing the State diagonally is made up of
precambrian rocks of Aravalli and Delhi Super group comprising the
metamorphosed gneisses, schists, marble, quartzite, calc silicate and ultra
basic and acidic intrusive rocks, trending NE-SW and dipping 30° to 70°
easterly. This is known as Delhi fold belt and is an important horizon for base
metals, other metallic and non-metallic minerals. The eastern and
southeastern parts of the State are occupied by rocks of Vindhyan Super
group mainly forming a plateau of sandstone, shale's and limestone. In the
southern part Deccan trap formation of cretaceous age are exposed.

73
 The Aravalli metallogenic province of Rajasthan is the most important
geological province for base metal and gold deposits. The province contains the
world class Rampura-Agucha Lead-Zinc deposit along with several large deposits
of Lead and Zinc in Rajpura-Dariba and Zawar belts. In addition, there are a
number of deposits in Deri-Basantgarh belt. Since the last decade, several gold
deposits have been proved in the southern part of the province in Banswara
district.

4.4.2 Mineral Potentiality: The State is geologically so endowed that

it becomes a veritable repository of minerals. Rajasthan is fortunate enough
to have a wide spectrum of mineral deposits. There are about 64 different
major and minor minerals produced in the State, contributing annual revenue
of more than 600 crores.
Rajasthan is the sole producer of garnet (gem variety), jasper and
wollastonite. Almost entire production of zinc (concentrate), calcite, asbestos
and gypsum in the country was reported from Rajasthan. Besides, Rajasthan
is the leading producer of ball clay (40%), feldspar (70%), fluorite (graded)
(59%), Kaolin (44%), lead concentrate (80%), ochre (72%), phosphorite
(79%), silver (54%), steatite (85%), barytes (53%), copper (34%), quartzite
(33%) and silica sand (21%).
The State Government welcomes new investments in the mineral sector and
is pledged to provide all necessary facilities to potential investors. Given the
availability of a large variety of metallic and non-metallic industrial minerals, there
is a huge potential of mineral-based industries in Rajasthan. In addition, there is
well-developed transport, communication and power infrastructure in the State.
The mineral policy of the State has been formulated to facilitate investment in

74
mineral-based industrial sector. The State offers an investor-friendly environment
and welcomes Indian and multinational investment in mineral-based industries.

4.4.3 Setting up of Mineral Based Industries:

Looking to the availability of Limestone Asbestos, Clay, Quartz, Feldspar,

and other economic minerals a large number of lime, asbestos based industries
are operating in the State. Pulverizing units to grind quartz, feldspar, soapstone
etc., are also operating in the state. The status of the state with regard to existing
mineral-based industries is given below.
Table-4.5

S.No. Industry Numbers

1. Cement Plants (Major) 16
2. Cement Plants (Mini) 9
3. Cement Plants (Tiny) 130
4. Copper Smelter 1
5. Fertilizer (Single super phosphate/urea) 8
6. Glazed Tiles and Ceramic 3
About 300 (Including 8 Gang
7. Granite Cutting & Polishing units
Saw Plants)
8. Insulator (L.T. & H.T.) 1
9. Lead Zinc Beneficiation Plants 3
10. Marble Cutting & Polishing units 1100 Gang Saw 50 Tiling Plants
11. Sanitary Ware 1
12. Sulphuric Acid 3
13. Super Zinc Smelter 1
14. Zinc Smelter 1
Quartz and Felspar Grinding and
15 300
Pulvarizing Units
Source-Deptt. of DMG,Udaipur

75
 A vast mineral resource provides innumerable opportunity for taking up of a
variety of mineral-based industries in the state. There are 7719 mineral-based
industries located in the state out of which maximum 819 units are situated in
Ajmer district followed by Nagaur. 1498 units of stone cutting and polishing
constitute the largest portion of the mineral-based units. More than 70% of the
mineral based units are based on stones and related industries alone.
Following table shows the figures of various minerals production, area, sale
value and total revenue earned and no. of employment generated in the sector
during 2008-09.
Table 4.6
S. Leases Area Production Sale Value Revenue Employment
Mineral
No. No. (in Hector) ('000 Tons) (Lac Rs.) ('000 Rs.) (Nos.)
1 Cadmium 0 0.00 0.43 865.03 12263.88 0
2 Copper Ore 3 700.75 1050.61 21012.28 89287.00 2000
3 Iron ore 16 581.78 56.34 177.66 1292.87 155
4 Lead Zinc (ROM) 6 6705.49 6612.96 108293.91 3426685.76 4325
5 Lead Conc. 0 0.00 133.77 0.00 0.00
6 Zinc Conc. 0 0.00 1224.08 0.00 0.00
7 Silver (Kg.) 0 0.00 82817.12 14720.35 73540.58 0
8 Manganese 1 18.90 7.29 0.91 5068.00 70
9 Asbestos 9 488.45 0.00 0.00 20.00 14
10 Ball Clay 72 5097.78 1210.50 7263.00 28964.07 575
11 Barytes 2 35.69 3.39 7.45 283.95 22
12 Calcite 40 863.19 32.20 127.30 12170.34 737
13 China Clay 135 2282.24 750.50 2430.96 20549.62 1213
14 Dolomite 17 1541.22 134.13 96.32 12615.17 438
15 Emrald 2 54.96 0.00 0.00 0.00 0
16 Fire Clay 3 55.99 0.30 0.60 14.00 0
17 Fluorite 10 1304.54 0.00 0.00 258.41 250
18 Garnet(Abr.& Crude) 19 243.54 0.00 0.00 515.74 5
19 Graphite 1 76.80 0.00 0.00 52.00 0
20 Gypsum 37 11964.99 4142.65 13080.66 307583.40 1045
21 Jasper 7 232.88 7.59 79.72 2.50 9
22 Kyanite 2 10.00 0.00 0.00 7.30 0
23 Lignite 5 6733.99 1126.48 3107.92 90868.43 3960
24 Limestone 30 18312.02 38386.59 33929.26 1846594.72 8559
25 Magnesite 4 145.50 0.03 0.00 2.00 5
26 Mica 14 160.88 2.62 25.05 145.55 89
76
27 Ochres 35 1022.98 969.99 1061.02 16691.80 148
28 Phyrophilite 7 224.94 3.46 8.15 424.00 100
29 Quartz 742 4792.48 608.61 1372.77 30550.16 5162
30 Felspar 798 4939.96 615.05 1117.53 29705.90 3130
31 Rock-Phosphate 6 2533.98 1323.36 18527.03 581422.00 1150
32 Selenite 4 920.62 15.47 150.20 1511.84 67
33 Silica Sand 97 2722.78 883.74 1634.90 17867.90 1791
34 Siliceous Earth 13 480.00 0.30 0.95 78.58 2
35 Soapstone 215 12318.64 716.39 1922.76 69895.18 3131
36 Vermiculite 2 9.93 0.00 0.00 20.00 1
37 Wollastonite 6 117.88 113.49 1005.78 12149.00 263
Misc. Income 0 0.00 0.00 0.00 35712.89 0

Total 2360 87695.76 60132.39 232019.45 6724814.53 38416

Source: Department of Mines & Geology, Udaipur

Details of various minerals and metals available in the different region as per
area production, sale value, revenue generated and total employment is given in
the Annex-

4.5 Exports

Exports hold the key not only for a healthy balance of payments positions
and macro economic, but also for a planned and sustained economic
development. In the absence of better performance on the economic front, the
balance of payments position of the country comes under strain and retards
economic progress. Rajasthan has traditionally been an exporter of primary
goods. The significance of exports from the state lies not only in earning foreign
exchange for the country’s exchequer but also in indirect benefits to the state
such as ;
1. Expansion of market opportunities for its produce;
2. Improvement in product quality and subsequent handling techniques;

77
 3. Technological up gradation in terms of plant, machinery and
manufacturing process;
4. Greater employment opportunities
5. Exposure to the international marketing and technological environment
etc.

The state government has identified exports as one of the thrust areas.
Export promotion cell has been set up in the state commissionerate of Industries.
The RSIC ltd. has been recognized as an export house. Promotional efforts for
export growth are also being made by the Bureau of Industrial Promotion and the
RIICO ltd. the manufacturer and exporter have given an excellent account of
themselves in export efforts, which is evident from the sharp increase in the
volume of exports in the recent years.
Government of Rajasthan has provided several incentives like over-riding
priority in release of power connections to units set up in EPIP / Export processing
zone, exemption from power cuts, purchase tax exemption depending on the level
of investment and entry tax exemption to help promote export-oriented units.
The policy of encouraging exports has already started paying rich dividend and in
turn exports has led to the overall industrial development of the state. State has
also declared its SEZ policy and act lot of concessions and facilities has been
incorporated.
The entrepreneurs of Rajasthan are exporting a wide variety of products,
which includes Handicrafts, carpets, readymade garments, printed fabrics,
makeup’s, leather goods, chemicals, minerals, stones viz. marble, granite, slate,
sand stone, engineering goods, precious and semi precious stones and jewllery
etc. the details of product wise and year wise is as below;

78
Table No.4.7
Break-up of export of various items of Rajasthan during last Five years
(Rs. In Crore)
S.No. Product 2004-05 2005-06 2006-07 2007-08 2008-09
1 Textiles 1589.01 1807.53 1864.54 2023.16 2030.56
2 Agro & Food Products 545.60 579.10 762.07 1320.07 1877.08
3 Gems & Jewllery (Including 1520.36 1724.32 1497.25 865.90 1710.44
Diamonds)
4 Engineering 684.81 1104.43 3301.49 2871.23 3410.85
5 Marble, Granites & dimensional 470.42 581.59 923.43 1075.31 913.67
Stones
6 Mineral fuel, mineral oils and - 2113.37 2181.01 1316.62 810.26
products
7 Electrical, Electronics & 90.44 96.10 98.23 99.28 102.98
Computer software
8 Wool & Woollens 24.20 32.11 22.25 24.51 20.47
9 Chemical & Allied 780.41 1373.20 1367.23 1031.29 1170.65
10 Drug & Pharmaceuticals 45.34 59.58 90.48 75.95 121.62
11 Plastic & linoleums 39.44 85.07 84.25 78.06 99.68
12 Handicratfs 1321.28 1609.05 1960.23 1484.42 1386.67
13 Leather & leather Product 19.91 56.16 46.90 48.07 40.01
14 Readymade Garments 414.23 812.24 657.95 585.79 880.38
15 Carpet (Durries) 258.51 304.95 309.21 273.16 258.52
16 Handlooms 0.35 0.410 0.60 0.66 0.74
17 Diamonds NA
18 Others 197.63 16.77 19.29 15.56 401.84
Total 8002.03 12355.97 15186.41 13189.04 15236.42
Source:- O/o of the Commissioner of Ind.GOR,Jaipur

4.5.1 Export infrastructure

RIICO plays a catalytic role in industrial development of Rajasthan. Keeping

in view the specific requirements of export-oriented units, RIICO has given
emphasis for development of special parks for setting up of such units. RIIICO on

79
behalf of Govt. of Rajasthan is providing and developing these basic infrastructure
facilities for the exporting units.

1. Export Promotional Industrial Parks

2. Special Economic Zones
3. ASIDE Scheme (Assistance to state for developing export
Infrastructure and allied activities)
4. AIR Cargo Complex (ACC) and inland container Depot (ICD)

1. Export Promotional Industrial Parks

The EPIPs have been developed / are being developed under the scheme of
department of Commerce, Govt. of India. In EPIPs only those units that undertake
to export a minimum of 33% of their production, are allotted land. Brief details of
these EPIPs are as under;
a). EPIP at Sitapura, Jaipur
The first EPIP of the state was developed by RIICO at sitapura, Jaipur over
an area of 361 acres (409 plots). The park is functional since march-1997 with
208 units (230plots) under production and 62 plots (28 units) are under
construction.
b). EPIP at Boranada, Jodhpur
The second EPIP of the state has been developed by RIICO at Boranada,
Jodhpur over an area of 207 acre on which an expenditure of approximately Rs.
18 crore has already been incurred. Plots are allotted mainly to handicrafts units.
All basic infrastructure facilities are available since July 2003.
c). EPIP at Neemrana, Alwar.
The third EPIP of the state is being developed at Neemrana located on NH-
8(Delhi-Jaipur Road). The park companies of 218 saleable industrial plots of which

80
210 plots have been allotted. This EPIP is being developed with an estimated
project cost of about Rs. 35 Crore and expenditure of Rs. 24 Crore has already
been incurred.

4.5.2 Special Economic Zone (SEZs) : The wings of change

SEZs are specially delineated duty free enclaves treated as a foreign

territory for the purpose of industrial, service and trade operations, with
exemption from custom duties and a more liberal regime in respect of other
levies, foreign investment and other transactions. Domestic regulations,
restrictions and infrastructure inadequacies are sought to be eliminated in
the SEZ for creating a hassle free environment. The SEZ scheme seeks to
create a transparent system by introducing simplified procedures for
enhancing productivity and making it easier to do business.
SEZs envisages key role for the state government in export promotion
and creation of infrastructure, investment and employability. Benefits derive
from investment and additional economic activity in the SEZ and the
employment generated has a multiplier effect on the economy.
SEZs have been driving industrial growth in India. This is an
established fact today that for a business to be globally competitive and eco
system has to evolve where all the key elements like infrastructure,
resources, logistics, hassle free environment etc. need to be provided. SEZs
act as a catalyst in providing these benefits to business.
Rajasthan government has been very proactive for the growth of
industries in the state. It has network of support organization like Rajasthan
state industrial development and investment corporation (RIICO), Bureau of
Investment Promotion (BIP), and the Rajasthan Finance Corporation (RFC)
amongst other.
81
 The state has adopted the Public private partnership model very
successfully for the implementation of the SEZ projects in the state.
Presently there are four operational SEZs in Rajasthan, while three of
these are state owned by Rajasthan state industrial development and
investment corporation ltd. (RIICO). The other one is joint venture between
the RIICO and Mahindra & Mahindra. Among those in the pipeline are six
SEZs at advanced stages of formal approval from the govt of India and nine
that have in principal approval. The details of the these four SEZs are as
below;

2. Special Economic Zones (SEZs)

Three SEZs have been developed / are being developed by RIICO.

The brief details of these SEZs are as under;

a) SEZ for Gems & Jewellery units at Sitapura, Jaipur (Phase-I)
The SEZ for Gems & jewellery units (phase I ), has been set up at
sitapura, Jaipur. It is planned over 21.50 acres of land. All of the 51 Plots
planned have already been allotted. Roads, drainage, boundry wall work and
power supply/ street light work and other basic infrastructure facilities have
been developed.

b) SEZ for Handicrafts units at Boranada, Jodhpur

The SEZ for handicraft units at boranada, jodhpur has been planned
over 180.94 acres of land (291) plots. Basic infrastructure facilities have
been provided in this SEZ

82
 C). SEZ for GEMS & jewellary units at Sitapura, Jaipur (Phase-II)
This SEZ for GEMS 7 jewellary units at sitapura (phase-II), Jaipur
has been planned over 89.39 acres of land (190 plots). Basic
infrastructure facilities have been provided in this SEZ,.
d) Public-Private Partnership for SEZ
RIICO on behalf of the state government , is also promoting its first
multi product SEZ in PPP mode on Jaipur-Ajmer National Highway. The SEZ
shall be developed on 2500 acres of land and the domestic tariff area will be
developed on 550 acres of land. In the phase –I government of India has
approved IT/ITes SEZ, Handicrafts SEZ and light engineering SEZ and also
accorded in principal approval for multi product SEZ
RIICO has also developed theme based parks such as special
economic zones at Jaipur jodhpur & Neemrana (being developed) , IT parks
at Jaipur, Jodhpur, Kota & Udaipur; EPIP at Jaipur and Jodhpur: Agro food
parks at Kota , Jodhpur & Sri Ganganagar; Apparel Park at Jaipur; Bio-Tech
Parks at Jaipur ,Jodhpur and Bhiwadi besides growth enters and other
special parks.

4.6 Khadi and Village Industries

The Khadi and Village Industries Commission (KVIC) is a statutory body

established by an Act of Parliament (No. 61 of 1956, as amended by act no. 12 of
1987 and Act No.10 of 2006. In April 1957, it took over the work of former All
India Khadi and Village Industries Board. The broad objectives that the KVIC has
set before it are...
• The social objective of providing employment
• The economic objective of producing saleable articles,

83
 • The wider objective of creating self-reliance amongst the poor and building
up of a strong rural community spirit.
Some of the major functions of KVIC are ...
• The KVIC is charged with the planning, promotion, organisation and
implementation of programs for the development of Khadi and other village
industries in the rural areas in coordination with other agencies engaged in
rural development wherever necessary.
• Its functions also comprise building up of a reserve of raw materials and
implements for supply to producers, creation of common service facilities for
processing of raw materials as semi-finished goods and provisions of
facilities for marketing of KVI products apart from organization of training of
artisans engaged in these industries and encouragement of co-operative
efforts amongst them. To promote the sale and marketing of khadi and /or
products of village industries or handicrafts, the KVIC may forge linkages
with established marketing agencies wherever feasible and necessary.
• The KVIC is also charged with the responsibility of encouraging and
promoting research in the production techniques and equipment employed
in the Khadi and Village Industries sector and providing facilities for the
study of the problems relating to it, including the use of non-conventional
energy and electric power with a view to increasing productivity, eliminating
drudgery and otherwise enhancing their competitive capacity and arranging
for dissemination of salient results obtained from such research..
• Further, the KVIC is entrusted with the task of providing financial assistance
to institutions and individuals for development and operation of Khadi and
village industries and guiding them through supply of designs, prototypes
and other technical information.

84
• In implementing KVI activities, the KVIC may take such steps as to ensure
genuineness of the products and to set standards of quality and ensure that
the products of Khadi and village industries do conform to the standards.
• The KVIC may also undertake directly or through other agencies studies
concerning the problems of Khadi and/or village industries besides research
or establishing pilot projects for the development of Khadi and village
industries.

85
 CHAPTER – V

CLUSTER
INDUSTRIES

86
 CHAPTER – V
CLUSTER INDUSTRIES

Rajasthan is famous for its rich heritage –its history, the maharajas
and their palaces. But the state is more than just a tourist destination, state
is now host to a number of small and medium enterprises alongside some
major industrial units that have done well in the desert state are textiles,
agro and food products, gems and jewllery, marble, handicrafts , readymade
garments, carpet and durries and gem stones.
Most of these sectors are export oriented and have shown high levels
of growth. SME across the various sectors have registered a 35% growth in
export during 2004-05. A number of enterprises promoted by pioneers have
over the years become major industry clusters and the unprecedented
growth of scattered industries has now created a need for ensuring
organized development.
State has specialty of having several pockets ranging from very
sophisticated items to traditional products through out its territory. These
concentrations are either due to skill/craftsmanship find in that particular
area or availability of particular raw material or the skills are traditionally
cherished and developed there. Cluster Industries have been identified for
development in the State. 60 Cluster Industries have been identified for
intensive credit planning & focused development by the MSMEs, out of
which 28 clusters have been covered under some on-going or already
completed cluster development initiative Marble Cutting of Kishangarh in the
State is also one of these cluster’s 32 more clusters are under consideration
for taking up under MSMEs cluster development program in next phase.
Gems and jewllery cluster of Jaipur is also envisaged for the second phase.

87
 For Sectoral development of industries in the State, following cluster
industries have been identified by the state government and developed by
various agencies, details of these are as given under;
Table No.5.1
S.No. Name of the Cluster Location of the cluster Implementing Agency
1 Printing & Dying Akola- Chittorgarh Will & Way Deve. Inst.
2 Handloom Cluster Darib- Churu Mansi Maru Sansthan
3 Murtikala Cluster Talwara-Banswara Jaipur Jila Vikas Parisad
4 Charm Juti Cluster Bhinmaal- Jalore Will & Way Deve. Inst.
5 Gota Loom Cluster Ajmer Janjagriti Shikshan Sansthan
6 Aari-Tari Cluster Nayla-Jaipur -
7 Murtikala Cluster Gola Ka bas-Alwar Maharan Pratap Adhayan & jan
kalayan sansthan
8 Honey Cluster Bharatpur Lupin Human Welfare & research
foundation
9 Pottery & Terakota Cluster Ramgarh- Alwar R.K.Sansthan
10 Abharayan Utpad Baran Mahila Udyog Prashikshan samiti
11 Stone Art ware cluster Dungarpur Jaipur Jila Vikas Parisad
12 Leather Product Cluster Jodhpur Meera Sansthan
13 Kasth kala Cluster Bassi-Chittorgarh Jankala sahitiya Manch Sanstha
14 Kashida kari Cluster Pugal- Bikaner Shanti maitri Mission
15 Stone cluster Pindwara-Sirohi Arpan Seva Sansthan
16 Tera-Kota Cluster Siyava-Sirohi Arpan Seva Sansthan
17 Auto-Component Cluster Alwar Alwar automobile components
manu. Society
18 Handloom Cluster Rajpur-jaipur Health & Social Development
research center
19 Marble Article Cluster Chotoli-jaipur Rastriya Manav Sansadhan &
vikas Sansthan
20 Sand Stone Carving Cluster Pichupada-Dausa Sunrise social services
development society
21 Carving on Peetal ke Balahedi-Dausa Maharan Pratap Adhayan & jan
Bartan kalayan sansthan

A brief detail about some of these clusters is as follows;

1. Gems & Jewellery
With a history of dating back more than two and half centuries, the
internationally recognized pink city of Jaipur is still a hot spot in the gems

88
 and Jewellery sector. From manual processing to value added branded
products, the industry has grown, keeping pace with the changing trends.
With over 2,00,000 peoples engaged in the industry, Rajasthan accounts for
Rs. 1650 Crore of the total $17 billion worth of Indian export of gems and
Jewellery. With more than 1300 exporters in the SME segment alone the
sector has been witnessing a growth rate of 15-20%.
2. Handicrafts
Another traditional industry that Rajasthan is well known for is the
export of handicrafts. The industry that started about 25-30 years ago today
boasts of an annual turnover of approximately 1400-1500 crore rupees.
There are over 500 handicraft manufacturing and exporting units providing
employment to about two lakhs people in Jaipur and jodhpur, the two main
handicraft centers in the state. In order to promote the industry an exclusive
handicraft center is being set up in the Boranada indusrtrial area, jodhpur,
besides setting up industrial parks at Basni & Boranada.
3. Garments
Garment manufacturing and exports is yet another important industrial
cluster in the state. After the end of the quota system, the garment industry
witnessed a sudden spurt lof growth of 25-30%. Huge export orders kept all
the exporters busy even in the off season for which tailors and fashion
professionals were hired from neighboring states. Over 2502 garment
manufacturing and exporters today account for annual exports worth Rs.
850 Crore, of which Rs. 500 Crore is from direct exports. The industry
provides employment to over two lakhs people. The industry is now eyeing
the growing domestic market too. The industry needs organized textile
parks and apparel centers which have sound printing and dyeing facilities of
international standards.

89
4. Printing & Dyeing
Rajasthan has long been known for its printed and dyed textiles. But
lately the hand block printing and dyeing units that employing over two
Lakhs people, have been in thick of controversy over creating an ecological
imbalance due to excessive use of dyes. With a total turn over of Rs.500
Crore, the industry is getting orders from exporters across the country and
especially from Delhi, Mumbai and Kolkata. Over a century old the cluster is
asking for industry status as it has invested about Rs.600 Crore in
machinery.

5. Carpets
The state is also famous for heritage carpet weaving. With over 170
manufacturing and exporting units, Jaipur is one of the largest processing
centers of handmade woolen carpets after Bhadoi in UP. Providing livelihood
to over 2.5 lakhs people, the industry accounts for annual exports worth Rs.
450 Crore.
A hand made carpet with fine quality work generally costs between $6
and $ 30 per sq.ft. in the international market. The labour intensive natures
of the industry and frequent droughts have helped the industry flourish in
the state. Carpet manufacturing needs no power or water, which have
always been scarce in the state. The industry emerged as regular source of
income for rural artisans and masses during drought in the state.
6. Agro Industry
With about 20,000 units in the state, the agro industry has an export
market of over Rs. 500 Crore. The size of the domestic market could be
several times that of exports, but details are not available. There 2164 agro
units in nagore,1496 in Sawai Madhopur, 1391 in Jaipur and 1192 in

90
 jodhpur. The industry has helped bring prosperity to the villages and
increase production and income as well as absorb surplus labour in the area.
In a way it helped solve the problem of unemployment. The major agro
products from the state include oil seeds(Ground nut , Caster seeds),
horticulture(fruits & Vegetables), tobacco, spices, cotton, diary and
guargum.
7. Stones
Rajasthan is home to exquisite natural stones like granite, marble
stone, slate and sand stone and it has a long tradition of stone usage. Of
the total exports from India, rajasthan accounts for about Rs. 800 Crore of
stones, of which sandstone and marble are the main items. The kishangarh
cluster about 100 KM. from Jaipur, is a major market for stones quarried in
Makarana and Rajsamand. Huge marble deposits, a well developed
quarrying base, availability of cheap labour and indigenously developed
machinery, a large domestic and export market and a well established
distributaion network are the main reasons for the business doing well in the
state.
8. Auto Cluster
Auto cluster at Bhiwadi is yet another important industrial destination
in the state. The presence of Honda Siel cars, at India’s second
manufacturing plant at the tapukara industrial area in a Bhiwadi indicates
that rajasthan could be the next big automotive destination in north India.
Laarge number of auto component units have also started their operations
in bhiwadi, Chopanki and Alwar industrial areas. Having prepared a blueprint
to attract investment of Rs. 5000 Crore, the RIICO has also signed MOU
with the Japanese External Trade Organization (JETRO) for Japanese
investment in neemrana. Ashoka Leyland (truck chasis assembly plant ),

91
 Eicher, caparo fasteners, climate system , federal Mogul, Hi-tech gears,
Amtek India and Balkrishana Tyres are some of the other players operating
from bhiwadi region.
9. Plastic Hub
Jaipur is the hub of the plastic industries in the state, with over 800
manufacturers. In all, there are about 1300 plastic manufacturing units in
the state, providing direct employment to about 2.5-3 lakh people and
indirect employment to about 4 lakh. With an annual production of 1.5 lakh
tonnes, the industry has an annual market of Rs.900 crore alongside
exports of Rs. 50-60 crore. Rajasthan is the seventh largest producer of
plastic in the country. The entire industry runs around a profit margin of 10-
12 %.
Apart from these clusters MSME-DI had selected 07 clusters, namely as
below;
1. Gem Cutting & polishing
2. Corrugated Boxes-Packaging Industry
3. Readymade Garments
4. Wire & Cable Industries
5. Rolling Mill & Induction Furnace
6. CI Castings
7. HDPE & PVC pipes

Activities of these first six clusters had been completed and remaining one
cluster i.e. HDPE & PVC pipes cluster is started form this year.
Some of the clusters is earlier selected by the state government was as
under;

92
Sl.No Item Location of Cluster
1 Hand made paper Sanganer (Jaipur)
2 Marble Makrana, Udaipur, Rajasamand and &
Kishangarh
3 Oil Mills Alwar, Bharatpur & Sawai Madhopur.
4 Food Processing (Rasgulla, Bikaner
Bhujia & Papad)
5 Mineral Grinding Beawar
6 Gem & Jewellery Jaipur
7 Statue Making (Murtikala) Jaipur
8 Welding Electrodes Kota
9 Hand Tools Nagaur
10 Wollen Carpets Jaipur
11 Screen Printing Barmer & Pali
12 Textile Hand printing Jaipur
13 Slate Industry Hindaun (Karauli)
14 Umbrella Assembly Falna (Pali District)
15 Wooden Toys Udaipur
16 Stainless Steel Re-rolling Jodhpur
17 PVC Wires and Cables Jaipur
18 Cement based Beawar, Sirohi and Behror

Number of units, investment & employment in some the cluster

industries taken for the developmental activities are given as follows.

5.1 Hand made Paper

Hand made paper industries are located in Sanganer near Jaipur.
There are around 13 units manufacturing handmade paper with an
investment ranging from Rs.10 lacs to Rs.50 lacs per unit. Few units are
100% export oriented units and their export is to the tune of Rs.1 crore per
year. These units provide employment to more than 700 persons. In
Rajathan, the literacy is around 31.03% with more and more emphasis
given for increasing the literacy in the State, there exists good scope for the
development of Handmade paper industry in the State. The demand of

93
 Handmade paper is increasing day by day in domestic as well as in
international market.
Kumarappa National Handmade Paper Institute, Sikarpura Road,
Sanganer, Jaipur is functioning in the State to cater to the needs of
Handmade Paper Industry.

5.2 Mineral Grinding

A cluster of mineral grinding is located in Beawar. There are 150
units of mineral grinding, which include 120 of ball mills and 30
hammer mills of quartz & feldspar in the cluster and 50 new units are
in pipe line. 85% of the mineral grinded goes outside the State for
industrial use in glass and ceramic, rubber, paints industry. Good
demand of the grinded mineral beckoning to bright future of this
cluster.

5.2 Marble Cutting

Rajasthan is richest with regard to marble deposits. It has the
reserve of 1000 million tonnes of good quality marble. 17 districts in
the State have so far shown presence of marble. Some important
places are Makrana, Udaipur, Rajsamand, Banswara and Ajmer.
Kishangarh is the main mandi for marble cutting. As per the statistics
data available with department of Mines and Geology, Government of
Rajasthan, the State produced 16,41,000 M.T. Marble having a sale
value of Rs.202 crores. Nearly 1 lac persons are employed directly or
indirectly in this industry. Annual export is estimated to be worth
Rs.1075.31 crores.

94
5.3 Oil Mills
Oil mill units are mainly concentrated in Sawai Madhopur, Alwar and
Bharatpur. An estimated 700 number of units are manufacturing oil with an
investment of Rs.1400 lacs providing employment to 2-3 persons per unit.
5.4 Food products
Food products like manufacture of Papad, Mangori, Namkin and
Rasgulla are localised in Bikaner district. There are 842 registered SSI units
in the district employing 2,053 persons with a total investment of Rs.1,034
lacs. The annual export of Agro and Food product is estimated to
Rs.1320.07 crore during the year 2007-08.
5.5 Cement
Cement manufacturing units are found in Sirohi district and Behror in
Alwar district. There are about 25 units in Behror and 5 units in Sirohi
district. Their investment is around Rs.1 crore per unit with a capacity of 50
TDP and the production is estimated to be 40 TDP. This industry provides
employment to 60-65 persons per unit. Mineral Grinding Industry in Beawar
is a good cluster having about 100 units manufacturing mineral powder.
5.6 Statue Making
Statue making is also located in and around Jaipur. There are about
1000 units manufacturing Statue/Murti using traditional skill. Investment is
Rs.50,000/- to Rs.1 lac per unit and employment 3-4 persons per unit and
the production is around Rs.6 lacs per year.
5.7 Welding Electrodes
There are about 15 units manufacturing this item in Kota district. The
total production capacity of this item in the State is about 500 M.T.

95
 employing about 200 persons. The units are utilising about 60% of the
production capacity.
5.8 Hand Tools
Plier, Spanner, Hammer and Goldsmith Tools are mainly manufactured
in Nagaur District. There are more than 1270 units including artisan
manufacturing these items with traditional skill.
5.9 Woollen Carpets
Manufacturing of Woollen Carpets is localised in Jaipur. Most of the
units are exporting their products. The annual export of woolen carpets was
Rs.273.16 crores during the year 2007-08.
5.10 Screen printing
Screen printing industrial units in the form of clustered are in existence
at Barmer and Pali of the State.
5.11 Textile hand printing.
The cluster of this industry is located at Sanganer and Bagru towns of
Jaipur district. The annual export of these items was Rs.2023.16 crores
during the year 2007-08.
5.12 Slate Industry
The Slate Industry as a cluster is functioning at Hindaun, District
Karauli in Rajasthan State.
5.13 Umbrella Assembly
Falna of Pali district has a good concentration of Umbrella
manufacturing units.
5.14 Wooden Toys
Udaipur has a good concentration of wooden toys units which
functions as a household industry.

96
5.15 Stainless Steel Re-rolling
Jodhpur has a concentration of more than 100 units engaged in the
manufacture of stainless Re-rolling.
5.16 PVC Wires and Cables
A good number of units manufacturing PVC Wires and Cables are
located at Jaipur.
5.17 Other Cluster Industries
Other cluster industries identified are lacquer craft in Jaipur, Screen
Printing in Barmer and Pali, Textile Hand Printing in Jaipur, Spinning and
Processing in Bhilwara and Textile Processing and White Metal Industry in
Jodhpur, Plaster of Paris in Bikaner, Slate Industry in Hindaun, district
Karauli, Umbrella assembly in Falna (Pali district) Electrical Transformers and
ACSR conductors in Jaipur and HDPE Pipes and Sprinklers in Jaipur having
70 units in operation.

6. AGRO FOOD PARKS

Rajasthan is one of the most fascinating States in India and perhaps

the richest in agriculture heritage. It is a common belief that it is a land of
desert, few people know and even less are aware that Rajasthan has vast
tracts of land that are irrigable. It is predominantly agrarian State where
agriculture contributes 25-40% of the Sate’s Domestic Product and 70% of
its produce is engaged in agriculture and allied activities. Thar desert that
runs, predominantly in the western part of the State and covers 250.000 Sq.
Kms. has for centuries been a non irrigable tract of land. The district of
Barmer, Bikaner, Jaisalmer and Jodhpur provide the co-ordinates of the
desert to a common travels.

97
 Indira Gandhi Canal has resulted a significant increase in the State.
This can covers the seven district of Rajasthan namely Barmer, Bikaner,
Churu, Hanumangarh, Jaisalmer Jodhpur and Sriganganagar. Crops of
mustard, cotton and wheat now flourish in the semi-arid western reason of
the State where nothing but sand ruled the roost for several years. The
canal is slowly but surely changing the face of Rajasthan.
The Government of Rajasthan is actively engaged in promoting various
new techniques of modern day farming and bringing the technology to the
farmer by organizing several fares and on site demonstrations. The
government’s massive be evinced by th number of subsidies and financial
support that it is extending to the customer.
Government of India is providing grant-in-aid for development of Agro
Food Park, so that all requisite information like Common Effluent Treatment
Plant, Warehousing, Testing Laboratory etc. are available at place and Agro
units located in these parks can derive advantage of large scale. Congenial
at place and Agro units located in these parks can derive advantage of large
scale. Congenial environment, hassle free labour law and best-suited
infrastructure are key-elements, on which these parks have been designed.
Rajasthan being primarily an agrarian economy and leader in producing
Bajra, Barely, Pulses, Coriander and host of industrial ventures of this
sector, it has announced following concession to units located in Agro Food
Parks developed by RIICO. Exemption of land and Building Tax, Stamp Duty
for 5 years, Public Utility Status, Entry Tax on raw materials and Exemption
of Mandi Tax. Looking to the current need of the hour, developing of Agro
Food Park at Ranpur, Kota and Boranada, Jodhpur has been undertaken in
the State. The details of the Parks are as under:

98
 Description Agro Food Park, Agro Food Park, Agro Food Park,
Ranpur, Kota. Boranada, Sriganganagar.
Jodhpur
Area Acres 136.74 192.47 81.14
No. of Plots 100 183 77
No. of Plots for 73 146 -
Dry Process
No. of Plots 18 28 -
Wet Process
No. of Plots for 9 9 -
Green House

These parks have been approved by the Ministry of Food Processing

Industries. These Parks will have requisite infrastructure including Common
Effluent Treatment Plant and Warehousing. The Agro Food park a Sriganganagar
is in planning state.

99
 CHAPTER VI

POTENTIAL
INDUSTRIES

100
 CHAPTER VI

POTENTIAL INDUSTRIES

Rajasthan State is rich in agricultural, mineral and livestock resources.

Mineral resources are available abundantly in quality and quantity. Varieties of
products are manufactured and exported from the State. The State Capital is
connected with Broad gauge Railway line with the rest of the country. It has
developed good infrastructure facilities. The State is providing about 35% of the
total wool production in the country. The population of the State is growing at a
faster rate as compared to the average growth rate of other States. Of the total
population 30.8% constitutes as main workers as per 2001 Census. Potentiality
and hindrance in the path of industrialization is discussed in the ensuing SWOT
analysis.

Strength Weakness

Stable power availability
Scanty and erratic rainfall and

Good air and Road linkages pelting under ground water

Good education & medical level.
care facilities
Lagging at health and

Geographically within reach education front.
of India’s major markets
Unequitable growth through

Rich in Milk, Wool, Spice and out the State.
other agricultural produce.
Poverty, higher birth rate and

Prospects of exploration of oil low level of education.
and gas in the THAR desert.
Low lending to industry

Tremendous tourism
Hybrid breeds of anilmal and
potential seeds are not in much

Robust demand by the vast quantum.
populace.
Poor quality of Wool

Abundance of developed
Low pace of percolation of IT
industrial areas.
Threat Opportunity

Raw material is getting value
More research work in
addition out the State amelioration of breeds of
101

Draining of technical persons livestock and enhance
to other States in lieu of lack productivity.
of opportunities.
Advancement in irrigation

Wool production is stagnant system

Sops offered by State Govt.
Water harvesting and
are not commensurate with exploring new water supply
many other States esp. resources from outside the
neighboring. State.

Slow pace of infrastructure
Scheme for reviving of sick
development. units and prevent growing

Investment is not compatible sickness.
with harnessing true
Offer more sops to make
potential. State policy competitive to

Growing industrial sickness other States.

Pollution challenges in tide
More emphasis to promote
and tide, printing industries service sector.
emerging out in today time.
Encouragement to set-up
pollution free units and
adopting new technology
without any delay

There is abundant scope for setting up of MSMEs in the State. Based on

available resources and from the findings of the industrial potential surveys
conducted in different districts in the State, a good number of Potential Industries
have been suggested for development. A list of 110 such products could be set
up in MSME sector in the State is given below.

Table-6.1

Sl. No Name of the item Investment in P&M

(Rs.in lacs)
1 Refined Edible Oil (50 MT Per day) 100.00
2 Rice & Dall Mill 15.00
3 Bread and Biscuits 15.00
4 Confectionery (Milk & Sugar based) 10.00
5 Cattle Feed 15.00
6 Roller Flour Mill (40 MT per day) 60.00
102
7 Milk Chilling Plant (600 MT) 20.00
8 Egg Powder 15.00
9 Mineral Water 15.00
10 Chips and Wafers 02.00
11 Garlic Powder 10.00
12 Isabgul processing 15.00
13 Hosiery (Knitted) 5.00
14 Sewing thread Reel 04.00
15 Crape Bandage 05.00
16 Zip Fasteners (Nylon) 70.00
17 Readymade Garments 15.00
18 Woolen Jersy (for defence) 08.00
19 Surgical Cotton 15.00
20 Nylon Socks 05.00
21 Elastic Tape 15.00
22 Under Garments (Hosiery) 15.00
23 Wooden Boards 15.00
24 Wooden Panel-Doors & Windows 12.00
25 Wooden Ply 25.00
26 Cycle Chain 15.00
27 Wire Mesh & Netting 20.00
28 Agricultural Implements 10.00
29 Aluminum Furniture 05.00
30 Sanitary Fittings (metallic) 10.00
31 Building Hardware 15.00
32 Paper Pins & Gem clips 10.00
33 Ball Bearing (small) 75.00
34 Staple pins 10.00
35 Cycle Free Wheel 35.00
36 Nuts & Bolts 35.00
37 Offset Printing 20.00
38 Wooden Furniture 25.00
39 Steel furniture 05.00
40 Tin Containers 10.00
41 G.I. Wire Drawing 20.00
42 Copper Wire Drawing 15.00
43 S.S.Tubes & Pipes 100.00
44 Stainless Steel Wire 50.00
45 Aluminum Die-casting 15.00
103
46 Auto Leaf Spring 35.00
47 Stainless Steel Wire 15.00
48 Welding Electrodes 35.00
49 Copper Powder 20.00
50 Aluminum Powder 20.00
51 Electric Motor (1 to 10HP) 15.00
52 Ceiling Fan 10.00
53 Domestic Electric Appliances 05.00
54 PVC Wires & Cables 15.00
55 G.L.S. Bulbs 10.00
56 Compact Florescent Tubes 60.00
57 Syringe Disposable 50.00
58 Distribution Transformers 25.00
59 Synthetic Detergent Powder 03.50
60 Disposable Cups & Plates 06.00
61 Corrugated Paper Cotton 10.00
62 Zinc Sulphate 15.00
63 P.P. Films 10.00
64 Computer Stationery 50.00
65 Plastic Folders Laminated 10.00
66 Handmade paper 50.00
67 Fibre Glass products 10.00
68 Plastic Moulded items 10.00
69 Paper Envelopes 5.00
70 Phenyl 15.00
71 Plastic Containers 15.00
72 Guar Gum Powder 100.00
73 Rigid PVC Pipes 40.00
74 Waxed Paper 15.00
75 Cycle Tubes & Tyres 30.00
76 Plastic Water Storage Tank 25.00
77 PVC Doors and Windows 60.00
78 Canvass Rubber Foam 60.00
79 HDPE Woven Sacks 60.00
80 Ceramic Glazed Flooring Tiles 45.00
81 Marble Cutting & Polishing 45.00
82 S.W.G. Pipes 60.00
83 R.C.C. Pipes 40.00
84 Granite Tiles & Slabs 40.00
104
 85 Sanitary Ware 60.00
86 Refractory Bricks 50.00
87 Bone china Crockery 30.00
88 Surgical Grade Plaster of Paris 50.00
89 Fly Ash Bricks 40.00
90 Marble Slurry Bricks 15.00
91 Marble Slabs/cutting 40.00
92 Diamond Cutting & Polishing 05.00
93 Gem Cutting & Polishing 05.00
94 Toughened Glass 20.00
95 Sodium Silicate 20.00
96 Sanitary Wares 45.00
97 Mineral Grinding 15.00
98 Plaster of Paris 15.00
99 A.C.Pipes and Fittings 10.00
100 PVC Footwear 15.00
101 Leather Shoe Upper 10.00
102 Chrome Tanned Hides & Skins 25.00
103 Vegetable Tanned Hides & Skins 25.00
104 Fancy Leather items 02.00
105 Leather Garments 05.00
106 Hand Gloves (Industrial use) 05.00
107 Safety Shoes (Industrial use) 05.00
108 Mojari Shoes 05.00
109 Leather Belt 02.00
110 Bone Crushing/Mill 10.00

A list of other 214 projects out of which 5o project are Large and remaining
164 are Small Scale identified by RIICO is enclosed in Annexure -- which could be
implemented in the State. Project profiles on most of these projects are available.
Identification of new viable and potential projects is an ongoing activity
culminating in the preparation of project reports through reputed consultants in
the respective fields.

105
6.1 Scope of Setting up of Mineral Based Industries

Looking to the availability of Minerals in the State, there is tremendous

scope for setting up of new minerals based industries. Various minerals mined in
Rajasthan are being sent to other States in raw form. The State is therefore,
deprived of the value addition in minerals as well as employment avenues to rural
and backward classes. The endeavour, therefore would be to encourage the
establishment of mineral based industries in the State. Some of the industries
which may come up in the State are given below.

Table-6.2

S.No. Mineral/Metal Industries

1. Copper Wire drawing and Foundry
2. Lead White lead & Chrome lead, Storage batteries
3. Zinc Zinc Oxide, Zinc sulphate
4. Cement grade limestone Cement
5. Chemical grade limestone Calcium ammonium nitrate, Calcium carbide,
Precipitated calcium carbonate, Hydrated lime .

6. Rock Phosphate Single super phosphate, Triple super phosphate,

Di ammonium phosphate and Phosphoric acid
7. China Clay Ceramics
8. Ball Clay Ceramics
9. Fire clay Refractories
10. Calcite Glazed Tiles
11. Quartz and Silica Boilers & Glass lumps and Fluorescent tubes
12. Bentonite & Fullers earth Pulverizing units, Earth activation units
13. Soapstone Insecticides, Cosmetics, Micronizing units
14. Gypsum Plaster of Paris, Gypsum Board
15. Fluorspar Karyolitic, Hydro fluoric acid
16. Garnet Abrasive, Cutting & Polishing
17. Lignite Briquette, Liquid lignite, Power plants
18. Potash Murates of Potash
19. Granite Processing units
20. Marble Processing units

106
6.2 Prospects of Agriculture based industries:

A vast agriculture produce is the encouraging factor for taking up

some agro-based industries in the State. State is dominating in production of
many crops like bajra, cumin, rape and mustered guar and various spices. This
sector also throw plenty of opportunity for export of slew of products which
includes spice, Dry roses & rose products, Medicinal plant produce etc.
industries that could be set-up in the State and export potential of agriculture
sector is discussed in ensuing paragraphs.

Table 6.3

Crop Area Possible Industries

Maize Udaipur, Dungarpur, Banswara, Corn Flake, Starch
Chittorgarh, Ajmer, Jhalawar and
Bhilwara District
Wheat Ganganagar, Kota, Bundi, Chittor, Flour, Noodles, Sapghetti
Bhilwara, Jaipur, Tonk, Alwar, Bharatpur, Sooji, Maida, Bread &
Sawai Madhopur, Pali and Hanumangarh Biscuits.
District
Barley Jaipur, Udaipur, Alwar, Tonk, Ajmer, Alcohol & Processed Food
Bhilwara, Sikar & Nagaur
Soya-been Soya Meal
Kota, Bundi, Jhalawar, Chittorgarh and
Baran.
Mustard
Almost in all districts of the State
Oil & Solvent Extraction.
Cotton Ganga Nagar, Bhilwara, Ajmer, Nagaur, Cotton seed oil
Pali and Hanumangarh.

Guar Hanumangarh, Churu, Nagaur, Jalore, Guar Gum and animal food
Sikar, Jhunjhunu, Bikaner, Jaisalmer and
Barmer.

Moth Churu, Nagaur, Bikaner, Jodhpur and Papad, Bhujila

Barmer
Gram Jaipur, Ganga Nagar, Churu, Pluse, Flour

107
 Alwr and Hanumangarh
Spices Kota, Jaipur, Swaimadhopur, Spices, Spices Olerosin
Chittorgarh, Jalore and Barmer

6.4 Development of Export oriented spice Markets

Keeping in view the potential of spice export from the State to boost up the
export of seed spices and other spices products, the following spice markets of
the State are being promoted exclusively for export.

Spice Market Commodity

Merta City Cumin
Jodhpur Fenugreek, Cumin and Chilies.
Sumerpur / Rani Fenugreek
Jaipur / Sikar Fenugreek and Cumin
Ramganj Mandi Coriander
Pratapgarh Dill Seed, Ajwain, poppy seed Gorlie and Fenugreek
Abu Road / Raedor Fennel

6.4.1 Export potential

The State has vast potential for export of following Agro commodities &
their products.

• Seed spices
• Garlic, red chilies
• Dry roses and rose products.
• Citrus fruits & their products.
• Onion & other processed vegetables.
• Sesamum seeds (processed)
• Basmati rice of Kota & Bundi

108
 • Non - edible oils like castor, neem, tumba & jateropha.
• Soya-bean de-oiled cake & soya-been protein isolates.
• Medicinal plants produce e.g. Isabgol, Mehandi (Henna), Senna
• Raw Cotton, Guar-Gum, Honey etc,
• Guar - Products
• Honey and Honey products
• Snack foods like Bhujia, Papad, etc.

6.5 Tourism

Rajasthan traditional strength lies in tourism. International tourism

contributes substantially to the foreign exchange reserves of the country
and the state is major contributor to the kitty. Despite the global turndown
the state received 2.55 Crore domestic tourists and 10.73 lakhs international
tourists in the calendar year 2009. During the year Rs 7.27 Crore were spent
on various promotional activities in the state along with the hosting of 20
fairs and festivals. At present 152 tourism development projects worth over
Rs. 1000 crore are in the pipeline. The government has taken upon itself to
restore the beauty of several monuments and heritage centers. More
importantly the state government has invested a lot of money in developing
infrastructure in the main tourist cities. Presently 18 government museums,
one art gallery, 322 protected monuments and 47 ancient sites are in
existence. The state government has initiated conservation and restoration
work of heritage properties like gagron fort, hawa mahal jantar manter and
amber fort.

Development of daang circuit (Kaurali, Bharatpur and Sawai

Madhopur), eco tourism circuit and desert safari is in progress. The state

109
government is also setting up a new museum of inter national standard in
town hall at Jaipur which would show case ancient sculptures precious
paintings coins arms and weapons of that era.

The state government is also putting special emphasis on the rural

tourism. It is investing Rs. 2 Crore on the development of rural tourism
areas like khejarali and khichan in Jodhpur and Sorson in Baran. The state
government for the first time organized “The Great Indian travel bazaar” in
which more than 800 delegates from across the globe participated. This
event showcased Rajasthan as one of the hot tourist destination in the
world. At present the state earns a measly sum from maintaining its
heritage structures of the erstwhile royalty have turned their prosperities
into hotels or buildings of tourists importance. The state has in its upkeep
nearly 250 monuments and earns Rs. 5 Crore per annum through the sale of
tickets

110
 CHAPTER VII

CONCESSIONS AND
FACILITIES

111
 CHAPTER VII

CONCESSIONS AND FACILITIES

Micro, Small and Medium Enterprises Development Act, 2006

The Micro, small and medium Enterprises development (MSMED)

Act-2006 seeks to facilitate the development of these enterprises as also
enhance their competitiveness. It Provides the first-ever legal Framework
for recognition of the concept of ‘’enterprise’’ which comprises both
manufacturing and service entities. It defines Medium enterprises for
the first time and seeks to integrate the three tiers of these enterprises,
namely, micro, small and medium. The Act a is provides for a statutory
consultative mechanism at the nation level with balanced
representation of all sections of stakeholders , particularly the three
classes of enterprises ; and with a wide range of advisory function .
Establishment of specific Funds for the promotion , development and
enhancing competitiveness of these enterprises, notification of
schemes/ Programmes for this purpose, progressive credit policies and
practices, preference in Government procurement to products and
services of the micro and small enterprises/ effective mechanisms for
mitigating the problems of delayed payments to micro and small
enterprises and assurance of a scheme for easing the closure of
business by these enterprises are some of the other features of the Act.

112
I. Policy Package For Micro,Small & Medium Enterprises

Rajasthan is endowed with plenty of physical resources, agro-

surplus and outstanding skills. These provide ample opportunities of
manufacturing, beneficiation and processing activities in the micro,
small and medium scale sector, which has been the strength of the
State. In the Context State, this sector, particularly handicrafts and
handloom have distinct identities and play a crucial role in the process
of economic development by value addition, employment generation,
equitable distribution of income, removal of regional disparities.
However, there remains a vast untapped potential which, through
proper harnessing and nurturing, can be translated into huge gainful
employment generation and manifold increase in contribution to the
State’s Gross Domestic Production.

It is the vision and endeavour of the State to graduate its micro,

small and medium enterprises to a globally competitive competence level.
For this, the weakness and the threats to be evaluated and proper
strategy needs to be formulated based on appropriate level and type of
inputs and policy support.
To materialize this vision of the State and to achieve the desired
goal, it will be imperative to reduce the transition and transaction costs
supported by both fiscal as well as non-fiscal incentives.

1. Approach and Strategy

The approach for policy initiatives and strategy adopted for the
State would strive to develop the micro, small units in the State, except
113
where specifically mentioned otherwise, to reduce transaction cost,
develop essential infrastructure for SSI sector., particularly in the rural
areas. It is also proposed to strengthen the institutional framework for
improving quality of SSI products through R&D, district laboratories, BIS
and ISO Certification. It supports research and development, compliance
with pollution control measure, both at individual level as well as common
level. The package would also facilitate setting up of national institution
and reputed research &training institutions in the State.

The State would strive to encourage handloom units function as

cooperative bodies, to utilize services of agencies of national repute and
experience in cluster development to develop micro, small enterprises
cluster; to provide appropriate support to geographically dispersed
unique and individual enterprises; to facilitate micro, small enterprises
handicrafts and handloom units achieve optimum level of
operation/productivity through design and technological intervention,
financial assistance, marketing support and procedural simplification so
as to provide global market competence and competitiveness.
The strategy would include providing the assistance proposed in
the policy package to the existing Micro and Small Scale Industry which
possess acknowledgement of their Entrepreneurship Memorandum (EM)
issued from the Industries Department. The Industries Department which
has provided facility of e-filing of the EM shall further encourage and
promote this.

114
2. Institutional Support for Quality Improvement.

2.1 In addition to any other grant given by Government of

India, RIICO will provide land at 50% of capital cost for establishment
of common effluent Treatment Plants (CEPT) facilities by industries
associations of Micro, Small and Medium Enterprises in industrial
areas/cluster. Operational/running/ maintenance cost of such plants
and facilities will be borne by such industries associations. This
support shall be initially provided to 10 CETPS/common effluent
treatment facilities, subject to review thereafter.

2. 2 The State Government shall bear 50% of the capital cost

incurred by the Small & Medium Enterprises for establishment of
effluent treatment plants/facility provided the unit uses 80% of the
recycled water.

2.3 An industrial enterprise or R&D unit or testing laboratory filing

and obtaining Patent/ISO certification during the period between
1.4.2007 and 31.12.2011 will be provided reimbursement of the
expenses incurred towards this, subject to a limit of Rs.2.00 lac or 10
times of the fee, whichever is lower.
2.4 To encourage Micro, Small and Medium Enterprises/
Handicrafts/Handloom units to attain international quality benchmarks.
The State government will endeavour to get regional officers/branches
of national laboratories like, CLIR, CFTRI, etc. established in the State.
State Government will provide land at 50% of the DLC rates and also

115
 provide part of the capital cost for setting up such
laboratories/institutions.
2.5 Research, development, and testing laboratories set up
by Micro, Small & Medium Enterprises Associations will be given land
at 50% of the DLC rates and may provide part of the capital cost
incurred on establishment of such laboratories, subject to limit of
Rs.2.00 Crore, provided that such laborites obtain accreditation from a
national level Accreditation Board/Authority.

3. Strengthening of MSME Support Agencies

3.1 The State Government shall re-structure Rajasthan Handloom

Development Corporation, Rajasthan Rajya Bunker Sahkari Sangh Ltd.,
Rajasthan Small Industries Corporation, Khadi and Village Industries
Board, RUDA & other Companies / Boards / Societies under the
Industries Department to focus on their key development / commercial
goals. The Government will restructure / write off the debt of these
organizations and consider additional infusion of equity so as to enable
the re-structured organizations to carry their mandate without the
baggage of past.
3.2 The Office of the Commissioner of Industries shall be
restructured to facilitate greater focus and emphasis on the
development of handloom and handicraft sectors and development of
cluster of the Micro and Small Enterprises.
3.3 The State Government shall sponsor officials of the Department for
professional training in prestigious Institutions / organizations like IIM,
NID, NIFT, EDI, IRMA, etc.

116
4. Easy and Smooth Flow of Credit to MSMEs.
4.1 To ensure easy and smooth credit flow to the Artisans, the
State Government will get lease 10,000 Artisans Credit Cards issued
per year from different banks in the next five years.

5. Infrastructure Development
RIICO shall develop separate rural small industrial areas for
Micro, Small and Medium Industry with 24 hours three phase
uninterrupted power supply and enabling infrastructure, viz. road
connectivity drainage system, street lighting, water supply etc. in the
potential growth areas to be identified by the State Government. Total
area of such rural small industrial areas will be of at least 100 hectares
with normal average plot size of 2000 sq. metres and plot shall be
allotted only to non-polluting industries. RIICO shall develop such
areas on no-profit-no loss basis.
5.1 The State Government shall provide 10% subsidy to RIICO
towards the capital cost.
5.2 30% plots will be reserved for Micro, Small and Medium
Enterprises in new industrial areas to be developed by RIICO.
5.3 The State Government will encourage private sector
Investment for setting up industrial parks and Clusters by providing
level playing field vis-à-vis RIICO i.e. the private investors shall be
allotted government land and provided help/assistance in the
acquisition of land on the same terms and conditions as are being
provided to RIICO.The State Government shall facilitate setting up of
such parks and clusters by providing road water supply, and power

117
 transmission line (up to such areas) at the same terms as applicable
to the RIICO areas.
5.4 The State Government will suitably augment Critical
Infrastructure Fund and 50% of the fund will be earmarked for
infrastructural needs of the Micro, Small Enterprises clusters, such as
providing road connectivity, power lines and water availability.
5.5 In addition to its regulatory functions, Pollution Control Board
will also play an advisory and promotional role to facilitate MSMEs
comply with pollution control norms.

6. Skill Training/H.R.D
6.1 For ensuring availability of skilled manpower in the State, training
institutes set up in the State by National/State level institutions,
may be provided free land and 50% of the capital cost involved.

7. Fiscal Incentives to MSMEs

7.1 To facilitate setting up of MSMEs, the following
concessions/incentives will be provided by the State Government;
7.2 Exemption from Entry Tax on inputs (Raw Materials, processing
materials, packaging materials except fuels).
7.3 For Micro and Small industries enterprises the CST Shall be
reduced to 0.25% only.
7.4 Stamp duty chargeable on loan agreements and deposit of title
deed and lease contract shall be reduced to Rs.100 per document.
Stamp duty chargeable for execution of simple mortgage either in
cases when the possession of the properties not transfer to loanee or

118
 when possession of property is transferred to loanee shall be reduced
to Rs.500 per document.
7.5 Exemption of 75% from Electricity Duty to the units Located in
rural areas. Rural areas mean outside the limit of Municipalities.
Municipal Councils, Municipal Corporations, Urban Improvement Trusts
and Urban Development Authorities.

7.6 The tax structure applicable to the KVIB / KVIC registered unit
which was prevailing prior to introduction of VAT has been continued
for all such units.

A suitable arrangement shall be put in place for early refund

Provisional payment of the due/accruing because of difference
between input VAT and selling CST/VAT on submission of undertaking
by the registered micro/small enterprises.

8. Development of the MSMEs in Cluster

8.1 The State Government shall adopt cluster development approach

and strategy for the development of Micro, Small and Medium
Enterprises. The basic aim of strategy and approach would be creating
additional employment opportunities for at least 1 lac people over the
next five years by addressing critical infrastructure gaps, creating
production base of critical mass to ensure economy of scale so
that the clusters become dynamical manufacturing hubs. Sectors
namely Handicrafts and Handlooms, Gems and Jewllery, Agro
base/Food processing MSMEs, Leather and leather products including

119
 footwear, Textiles and apparels, Stone, Ceramics and pottery, Light
engineering and auto engineering shall be taken up on priority for
development in clusters. 50 clusters in next five years shall be taken
up for intervention based on the identified missing links, level of
nature of required support in the field of infrastructure, capacity
building of human resource, market development assistance and
technology adoption and product diversification.

8.2 The State Govt. would act as facilitator by way of providing part
assistance to the clusters to help them tide over the critical
bottleneck of lack of quality and adequate support in the existing
clusters. For the existing clusters as well as five new green fields
cluster specific parks shall be developed in the next five year with self
sufficient and good quality infrastructure to support the production
system. Following activities shall be undertaken.
(a) Strengthening/creation of infrastructure in the existing
clusters such as improvement of roads, water supply,
sewerage/effluent clusters/ treatment/ disposals, setting up industries
specific common facility centres- cum -design/product display centres.
(b) Creation of infrastructure of power supply and approach road at
the door step Greenfield cluster Park. The cost of the internal
infrastructure of the park such as roads, water supply, power supply
effluent treatment common facility centre shall be shared by the
enterprises of the park.

120
9. Marketing Supply
9.1 The State Government shall continue to provide the following
facilities for purpose of stores/services from micro and small
enterprises registered/having Entrepreneurs Memorandum,
with the Industries Department by its various departments,
PSUs and autonomous bodies:

(a) Tender form shall be made available at 50% of the

prescribed cost.
(b) Earnest money shall be deposited at 0.5% of the
estimated value of purchases/services.
(c) Security deposit will 1% of the value of the
purchases/services.
(d) Following the procedure prescribed in GF & AR, even in
cases where prices quoted against a tender by the
small and micro enterprises located in Rajasthan are not
found competitive as per the applicable rules and the
price of a tendering enterprise(s) from outside the State
or from Large or Medium or from any other source, is
adjusted lowest, the requirement of 60% of
stores/services, as mentioned in the tender shall be
obtained from the micro or small enterprise(s) located
in Rajasthan, rendering for the items/services of
purchase/hire, if they agree to supply, at the adjusted
lower rate, provided the quality & standard and
schedule of delivery and other terms are same.

121
 9.2 In cases of purchase through tenders, Rule 54 of GF & AR
dealing with comparison of rates of firms outside and those in
Rajasthan will be made applicable mutatis mutandis to State PSUs and
Autonomous Bodies. As a result, all State PSUs/ Autonomous Bodies
will also exclude the element of VAT from the rates quoted by
Micro/Small enterprises of Rajasthan and will include the element of
Central Sales Tax in the rates of firms outside Rajasthan.

II. Concessions & Exemption

(i) 50% of the Capital cost for establishment of Common Effluent

Treatment Plant/Facilities (CETP/Facilities) by Industries
Association (in any of constitution) of Micro, Small and Medium
Enterprises in industrial areas/clusters in the State.
(ii) 50% of the capital cost incurred by the Small and Medium
Enterprises for establishment of individual Effluent Treatment
Plant/ Facility. This benefit would be available only if the
enterprises’ establishing the Effluent Treatment Plant/Facilities
uses 80% of the recycle water.
(iii) Reimbursement of the expenses subject to a limit of Rs.2.00 lacs
or 10 times of the fee whichever is lower incurred for filing and
obtaining Patent / ISO Certification during the period between
1.4.2000 to 31.12.2011 by an industrial enterprises or R&D unit
or testing Laboratories.
(iv) Part of the capital cost as decided by the competent committee
under clause 6(1) for setting up of a regional office or the
branch of national laboratories, in the State.

122
 (v) Part of the capital cost as decided by the appropriate committee
mentioned under clause 6 for the establishment of Research,
Development and Testing Laboratories set up by Micro, Small
and Medium Enterprises Association. Maximum limit of part of
the capital cost to be provided under the scheme by the State
Government would be Rs.2.00 crores. This benefit would be
available only such laboratories which obtain accreditation from
national level accreditation board/authority
(vi) 50% of the capital cost for setting up of training institute in the
State by National/State Level Institutions for ensuring availability
of skilled manpower in the State.
Note: The State Government after providing 50% of the capital
cost to first 19 commissioned Common Effluent Treatment Plant /
Facilities may recommend to State Government to extend these
benefits for further Common Effluent Treatment Plant /Facilities.

75% exemption from Electricity Duty to the Micro, Small and Medium
Enterprises located in rural areas would be available.

III. ENTREPRENEURSHIP AND MANAGEMENT INSTITUTE

Entrepreneurship and Management Development Institute,

Rajasthan (EMI) has been established by the Government of
Rajasthan and Government of India in association with National and
State level Financial Institutions. The Institute’s activities focus on :-
i) Organizing EDPs (Entrepreneurship Development Programmes)
ii) Conducting Trainers Training Programmes
iii) Holding Seminars
123
 iv) Up-grading Management Skills for practicing entrepreneurs
v) Running Post graduate course for developing professionals in the
area of entrepreneurship Small Business Management
Development
vi) Evolving effective training strategies, manuals, training tools and
instruction materials
vii) Building an entrepreneurial culture in the State.

IV. SPECIAL PURPOSE INDUSTRIAL COMPLEXES

Special Industrial Complexes are being developed in the State by

RIICO to meet the requirements of specific industries, particularly of thrust
sectors, at the locations in the box.

S.No Sector Location

1 Gems & Jewellery EPIP & Gem Park, Jaipur
2 Hosiery Chopanki, Bhiwadi
3 Auto ancillary Ghatal (Bhiwadi) & Sitapura (Jaipur)
4 Ceramics Khara (Bikaner)
5 Soft-ware technology EPIP (Jaipur)
6 Electronics & Telecom Kukas (Jaipur)
7 Textiles Bhilwara, Sanganer, Sitapura, Pali,
Jodhpur, Balotra
8 Agro Industries IGNP Area
9 Leather Manpur – Macheri
10 Wool Industries Beawar, Bikaner
11 Handicrafts Shilpgram (Jodhpur & Jaisalmer)
12 Dimensional Stones Kishangarh, Udaipur, Chittorgarh.

Availability of gold at international prices in industry clusters will

be facilitated by approaching the authorized Agencies in this regard for
Gems & Jewelry Industry. Establishment of a custom bonded
warehouse at an appropriate location to make available at an

124
 appropriate location to make available gold, Silver and precious stone
would be supported. RIICO will provide land for setting up an Artisan
School in the Private/NGO sector for gemstone/diamond polishing and
studding.

V. Pollution Boards
Rajasthan pollution control board will set-up regional offices in
major industrial Areas and Growth centre in a phase manner.
However, where such regional offices are not set up ,a nodal
officer-With requisite authority for environment related issues will be
deputed To each district Industries Centre (DIC) to help
entrepreneurs in securing Requisite clearances. The pollution control
board has reviewed the exiting list of small scale Industries which are
exempted from the requirement of securing NOCs/Consents. The list
has now been enlarged to include 150, instead of earlier115
industries. Details of such industry are available with RIICO. In case of
SSI and Tiny unity, nodal officers will be authorized to issue no
Objection certificate (NOCS) with 7 days provided the units belong to
Other Industries’ category, and are located in an Industrial Area.

Apart from these facilities there are many facilities in the state
provided from MSME-DI, on behalf of Govt. of India, pertaining to
MSME sector. Some of them are as under

VI. WORKSHOP FACILITIES

MSME – Development Institute Jaipur has a common facility

workshop located in the close vicinity and is equipped with following

125
 machines. Job Work charges for various machines installed in Central
Work Shop Jaipur, for MSME Units are given as under. Small Scale
Industries are invited to make use of these machinery for making dies,
moulds, jigs fixtures, tooling etc.

Job Charges
S.No Name of the Machine
(Per Hour)
1. EDM Wire Cut Machine, 743 Maxi Cut
Rs. 374.00
(Electronica)
2. EDM 2NC-R-50 Spark Erosion Machine
Rs. 140.00
(Electronica)
3. Vertical Machining Centre VMC-400 (HMT) Rs. 374.00
4. M1TR with DRO (HMT) Rs. 83.00
5. Lathe machine (HMT) Rs. 23.00
6. Shaper machine Rs. 28.00
7. Vertical Milling Machine (HMT) Rs. 58.00
8. Universal Milling Machine (HMT) Rs. 83.00
9. Vertical Surface Grinder GVS-30 (HMT) Rs. 83.00
10. Surface Grinder (Praga) Rs. 46.00
11. Tool & Cutter Grinder Rs. 58.00
12. Radial Drilling Machine Rs. 20.00

For Medium & Large Scale units charges are 33% Extra.

VII. ISO-9000/14001 CERTIFICATION FOR QUALITY IMPROVEMENT

ISO-9000 has become synonymous with quality. It is a world

accepted quality norm without which it may not be possible to export the
goods to other countries. Small Scale Industries are making substantial
contribution in country’s export. In order to prepare the small-scale
industries to face the threat coming in the way of export in future due to
ISO-9000s barrier, the small industries Development Organization has

126
 implemented the schemes to give incentive to small scale industries
acquiring IS-9000. Scope of the Scheme now has been extended to provide
reimbursement of expenses acquiring ISO-14001 (Environment Management
Systems) Certification. The incentive provides reimbursement of the
charges for acquiring ISO-9000 certification to the extent of 75% of the cost
subject to a maximum of Rs.75,000/- in each case.
The MSME-Development Institute, Jaipur organizes awareness and
motivational Programmes on ISO-9001 for the benefits of small scale
industrial units located in the State of Rajasthan.

VIII. Testing facilities Available at MSME-Testing Station-Jaipur

A. Civil Testing
- Testing of C.T.D/T.M.T. Bar as per IS:1786
- Testing of Ordinary Portland Cement as per 56:269
- IS:8112 and IS:12269
- Testing of Red Sand Bricks as per IS:1077
- Testing of Water for construction as per IS:3025
- Testing of Cement Concrete Cubes
- Testing of Cement Mortor Cubes
- Testing of Manhole covers as per IS:1728 and IS:17592
- Testing of Barbed Wire as per IS:278
-
B. Metallurgical Testing
- Tensile Strength
- Compressive Strength
- Bend Test
- Rebend Test
- Hardness Test
- Load Test
-
C. Chemical Testing
- Chemical Analysis of Iron and Steel
- Chemical Analysis of non-ferrous metals and alloys
- Chemical Analysis of Ores and Minerals
- Testing of Paints and Varnish
127
 - Testing of Shoes and Metal Polish
- Testing of Zinc Coating.

IX. Integrated Infrastructure Development Center (IID)

The scheme of Integrated Infrastructure Development (including

technological back-up services) for small scale industries to facilitate the
location of industries in rural backward areas, to promote stronger linkages
between agriculture and industry and to generate employment was
launched in 1994. By the end of December, 2002, 70 IID centers have been
sanctioned in the rural/backward areas, which were not covered under the
growth center scheme being implemented by the Department of Industrial
Policy and Promotion to create and develop infrastructural facilities like
developed sites, power distribution network, water telecommunications,
drainage and pollution control facilities road, banks, raw materials depots
storage and marketing outlets, common facilities and technological back-up
services.
Salient features:
• Project size of each center would be around 15 to 20 hectares
• Each IID center is expected to accommodate 400 to 450 small scale/tiny
units.
• Scheme will create and augment infrastructural needs within the project
area with full technological back-up.

The Central government provides assistance upto 40 percent or

Rs.2.00 crores whichever is less for setting up industrial estates for SSI units
under the scheme. The Central Government is more liberal for the North-

128
 Eastern States of the Country where the share of assistance by the Central
Government is 80% or Rs.4.00 crores whichever is less.

X. Bio-Tech Industry Perspective

Biotech companies need to have correct information in contemporary

technology and current business environment. As biotechnology is high-tech
science oriented, it is imperative that contemporary technological knowledge
can only be gathered through the up-to-date information of the science
behind the technology. Knowledge has to be applied through actions.
Therefore, the prelude to actionable technological information would be the
presence in place of a uniquely talented group of people in organizations to
make the latter successful. Research based commercial organizations in
biotechnology would have a large number of scientific personnel in addition
to the able business managers. WorId-wide, USA is leading in modem
biotechnology and biotech industry, but developments in other countries
especially in European and Asian is also significant. Countries like UK,
Germany, France, Sweden, Switzerland, Belgium, Denmark, Italy, Finland,
Ireland, Cuba, Hungary, Poland, China, and Russia, have made significant
progress. Among the Asian countries Israel, Japan, China, India and South
Korea have several modern biotech companies. India, China and South
Korea are expected to emerge as major players towards providing the
healthcare products at much cheaper prices. than at what prices they are
available to day. In agriculture, China is poised to pioneer achieving major
breakthrough among developing countries that would inspire many poor
countries to adopt modem biotechnology in their agriculture. Australian
developments in certain sectors are also expected to be substantial. Besides,

129
significant progress is foreseen from Canada, Brazil, Argentina, Mexico, and
Columbia. Among the African countries maximum developments are
expected from South Africa. Globally, main developments are expected in
health care products followed by agriculture.
In industrial perspectives, the hotspots in biotechnology platforms,
promising new biotech products include gene splicing, host-compatible
constructs creation in prokaryotes followed by using eukaryotic cells for the
transcription, translation and post-translational modification to create near
natural equivalents of bio-active proteins. This all happened in 1970s and
1980s and revolutionized the drug industry and therapy. The decades of
1980 and 1990 had seen phenomenal growth in the production of bioactive
therapeutics. It is probable that this trend would be maintained during
another two decades, keeping in view the number of companies being
incorporated every year world over. Concurrently, a large number of
technology platforms have been created from increased understanding of
signal transduction pathways of cells and tissues; the development of high-
throughput screens that provide a wide array of information that facilitate
the search for clinically useful compounds; and better understanding of cell
based immune rejection thereby especially the monoclonal, facilitating the
possibilities of interrupting or delaying rejection, which in turn shall make all
transplantation as well as xeno- transplantation of organs increasingly
feasible. Tissue engineering and tissue transplantation along with
combinatorial chemistry tools are emerging as alternative solutions to organ
failure. In agriculture, transgenic plants are expected to ease agricultural
production with reduced use of chemical pesticides as well as reduced usage
of fertilizers and water. Several designed crops are expected to emerge that
are nutritionally fortified and superior. The environmental pollution problems

130
are expected to be addressed more efficiently by the use of engineered
microbes and plants. With the combined use of Information Technology
tools, Nanotechnology and Bioinformatics, various devices, tools and
procedures are in the offing. Bio-chips are expected to contribute to simple
and easy-to-use diagnostic kits for detecting genetic disorders, discovering
new drugs and research applications. Proteomics would shed light to
genome-encoded events and would contribute to drug discovery and
research. Bioinformatics would facilitate the progress of research in
pharmacogenomics and data mining. The lead biotech platforms are
combinatorial chemistry, proteomics, bio-chips, pharmacogenomics, tissue
engineering, all transplantation, xeno transplantation in healthcare system
while genetically modified plants in agricultural biotechnology. Several
products and services are expected to be emerging from each of these
areas using one or several platforms.
India has developed considerable competence in selected areas that
provide the entrepreneurs an edge over other countries to set up viable and
competitive biotech industry in these areas. Indian Government has been
proactive and would continue to playa significant role in the promotion of
biotechnology in all its facets. These efforts have been instrumental to
developing competence within the country. The areas of core competence in
India in the context of biotechnology are:
• Capacity in handling sterile fermentation processes
• Skills in handling animal and microbial cells at large scale
with hands-on experience in microbiology
• Skills in plant cell/tissue culture propagation and handling
• Skills in cloning of desired organisms in relation to rDNA
Technology Skills in manipulating stem cells

131
 • Skills in extraction and isolation of plant and animal
products
• Proficiency in immunology and hybridoma and phage-
display technologies
• Competence in chemical synthesis
• Capacity in downstream processing and isolation
methods for fragile biomolecules
• Competence in plant and animal breeding
Skills in fabricating bio-reactors and processing equipment
of diverse kinds of infrastructure
With the above strengths in view and having regard to the market
demand of products and processes in Indian context, the investment and
business opportunities in various sub-sectors of biotechnology are enormous
with opportunities unlimited for indigenous and foreign markets. It can be
stated that over the next five years, possibilities could be created for fresh
investment of Rs. 7 to 8 billion in India that hold the promise of changing
the biotech production scenario considerably. Such quantum of fresh
investment if materializes, would hold the potential of providing turnover of
Rs. 9 to 10 billion during the next 5 to 7 years, that could contribute
towards import substitutions, augmentation of local production and
introduction of some new products in the global market, as per the available
market surveys and literature on the pipeline monitors for biotech products.

XI. Market Development Assistance (MDA) Scheme

The Scheme offers funding up to 90% in respect of to and fro air fare
for participation by SSI entrepreneurs in overseas fairs/trade delegations.
The scheme also provides for funding for producing publicity material upto
132
 25% of the cost, sector specific studies (upto 2 lacs) and for contesting anti-
dumping cases (50% of the cost upto 1 lac – for individual SSI &
Association.

XII. Foreign Direct Investment (FDI) Policy

With the promulgation of the MSMED Act 2006, the restrictive

24% ceiling prescribed for equity holding by industrial undertakings,
whether domestic of foreign, in the MSEs has been done away with
and MSEs are defined solely on the basis of investment in plant and
machinery (manufacturing enterprises ) and equipment (service
enterprises ). Thus, the present policy on FDI in MSE permit FDI
subject only to the sectoral equity caps, entry routes and other
relevant sectoral regulations.

XIII. Limited Liability Partnership (LLP) Act, 2008

The salient features of the proposed LLP Act, 2008 are as under:
(i) LLP shall be a body corporate and a legal entity separates from its
partners its partners. It will have perpetual succession Indian partnership
Act , 1932 shall not be applicable to LLP, since LLP shall be in the from of a
body corporate .
(ii) An LLP has to be incorporated with a minimum of two persons. The act
does not restrict the benefit of LLP structure to certain classes of
professionals only and would be available for use by any enterprise
which fulfills the requirement of the Act.
(iii) the LLP will be an alternation corporate business vehicle that would
give the benefits of limited liability but would allow its members the

133
flexibility of organizing their internal structure as a partnership on based
on an agreement.
(iv) on registration LLP shall be capable of : (a) suing and being sued ;
and (b) acquiring , owning holding and developing or disposing off
property.
(v) A person may cease to be a partner of a LLP in accordance with an
agreement with the other partners or in absence of agreement with the
other partners, by giving a notice in writing of not less than 30 days of
his intention to resign as partner .
(vi) In the event of an act carried out by a LLP, or any of its partners, with
intend to defraud creditors of the LLP or any other person or for any
fraudulent purpose, the liability of the LLP and partners, who acted with
intend to defraud creditors or for any fraudulent purpose shall be unlimited
for all or any of the debts or other liabilities of the LLP.
(vii) A contribution of partner may consist of tangible, movable or
immovable or intangible property or other benefits to the LLP including
money, promissory notes, and other agreements to contribute cash or
property, and contracts for services performed or to be performed.
(viii) While the LLP will be a separate legal entity, liable to the full extent of
its assets, the liability of the partners would be liable on account of the
independent or unauthorized actions of other partners, thus allowing
individual partners to be shielded from joint liability created by another
partner’s wrongful business decisions or misconduct.
(ix) An LLP shall be under obligation to maintain annual accounts reflecting
true and fair view of its state of affairs.
(x) Provisions have been made in the Act for corporate actions like mergers,
amalgamations etc.

134
 (xi) There is a provision of voluntary winding up as well as winding up by
the Tribunal.
(xii) There are provisions for inter conversion of LLP into private company
etc.
The LLP Act should pave the way for greater corporatization of the Small
and Medium Enterprises –thereby enhancing their access to equity and
funds from the market.
XIV. De- reservation
The issue of de-reservation has been a Subject of animate debate
within government for the last twenty years. The Approach to the Eleventh
Five Year Plan notes the adverse implications of reservation of products for
exclusive manufacture by the MSEs and recommends the policy of
progressive de-reservation. To facilitate further investments for
technological up gradation and higher productivity in the micro and small
enterprises, 654 items have been taken off the list of items reserved for
exclusive manufacture by the manufacturing micro and small enterprises in
the last few years- reducing it to 21 at present. This has helped the sector in
enlarging the scale of operations and also paved the way for entry of larger
enterprises in the manufacture of these products in keeping with the global
standards.
XV. Credit/Finance

Credit is one of the critical inputs for the promotion and development
of the micro and small enterprise. Some of the features of existing credit
policy for the MSEs are:
(a) Priority Sector Lending
Credit to the MSEs is part of the priority Sector Lending Policy of
the banks. For the public and private sector banks, 40% of the bank

135
 credit (NBC) is earmarked for the Priority Sector. For the foreign
banks, however, 32% of the NBC is earmarked for the Priority Sector,
of which 10% is earmarked for the MSE sector. Any shortfall in such
lending by the banks has to be deposited in the small Enterprise
Development Fund (SEDF) to be set up by the Small Industries Bank
of India (IDBI).
(b) Institutional Arrangement
The SIDBI is the principal financial institute for promotion,
financing and development of the MSE sector. Apart from extending
financial assistance to the sector, it coordinates the functions of
institutions engaged is similar activities. SIDBIs major operations are
in the area of (i) refinance assistance (ii) direct lending, and (iii)
development and support services, commercial banks are important
channels of credit dispensation to the sector and play a role in
financing the working capital requirements, besides providing term
loans (in the form of composite loans). At the State Level, State
Financial Corporation’s (SFCs) and twin-functional State Industrial
Development Corporations (SIDCs) are the main sources of long-term
finance of the MSEs sector.
Recognizing the importance and easy and adequate availability
of credit in sustainable growth of the MSE sector, the Government has
announced a Policy Package for Stepping Up Credit to Small and
Medium Enterprises (SMEs), with the objective of doubling the flow of
credit to this sector within a period of five years. To ensure better flow
of credit to MSEs, the Ministry of MSME is also implementing the
following major schemes.

136
 (C) Credit Guarantee Scheme
To ensure better flow of credit to micro and small enterprises by
minimizing the risk perception of banks/ financial institutions in lending
collateral security, the Government launched Credit Guarantee Fund
Scheme for Micro and Small Enterprise in august 2000. The scheme
cover collateral –free credit facility extended by eligible lending
institutions to new and existing micro and small enterprises for loans
up to 100 lakh ($250,000) per borrowing unit. The guarantee cover up
to 75% of the credit sanctioned [85% in respect of loans up to Rs. 5
lakh ($12,500) and 80% for loans provided to MSEs owned /operated
by women and all loans in the North East Region]

(d) Performance & Credit Scheme

To performance & Credit Rating Scheme for manufacturing MSEs

was launched in April, 2005 with the objective of assisting the MSEs in
obtaining performance-cum-credit rating which would help them in
improving performance and also accessing bank credit on better terms
if the rating is high. Under the scheme (implemented by the National
Small Industries Corporation in conjunction with reputed rating
agencies), 75% of the fee charged by the rating agency is reimbursed
by the Government subject to a maximum of Rs. 40,000 ($1000).

XVI. Emerging Sources

Faced with increased competition on account of globalization, MSMEs

are beginning to move from an obsession with bank credit to a verity of
other specialized financial service and options, In recent years, the country
has witnessed increased flow of capital in the form of primary/secondary

137
 securities market, venture capital and private equity, external commercial
borrowings, factoring service, etc. More advance MSMEs have started
realizing the importance of these alternative sources of funding to raise
resources and the need for adopting better governance norms to take
advantage of these funding sources. The enactment of the Limited Liability
Partnership Act, 2008 is expected to provide a trust to the MSMEs in their
move towards corporation.

XVII. Competitive Technology

In today’s fast paced global business scenario, technology has become

more vital than ever before. With a view to foster the growth of MSME
sector in the country, Government has set up ten state of the art Tool
Rooms and training Canters. These Tool Rooms provide invaluable service to
the Indian Tool Rooms are highly proficient in mould and die making trained
craftsmen in the area of tool and die making. These Tool Rooms are highly
proficient in mould and die making technology and promote precision and
quality in the development and manufacture of sophisticated moulds, dies
and tools. The Tool Rooms are not only equipped with the best technology
but are also abreast with the latest advancements like CAD/CAM, CNC
machining for tooling, Vacuum Heat Treatment, Rapid Prototyping, etc. The
Tool Room & Training Centre also offer various training programmes to
meet the wide spectrum of technical manpower required in the
manufacturing sector. The training programmes are designed with optimum
blend o theory and practice giving the trainees exposure on actual jobs and
hands on working experience. The Tool Rooms have also developed special
training programmes to meet the requirements at international level, which
are attended by participants from all over the globe.

138
 The ministry of MSME implements the following schemes and
programmes for the up gradation of technology of the MSMEs.
The Micro and Small Enterprises Cluster Development Programme
(MSECDP) is implemented for holistic development of clusters of MSEs. The
programmes envisages for capacity building, skill development, technology
up gradation of the enterprises, improved credit delivery, marketing support,
setting up of common facility centers, etc. based on diagnostic studies
carried out in consultation with cluster units and their collectives and
management of cluster-wide facilities by the cluster collectives.

XVIII. National Manufacturing Competitiveness Programme

The National manufacturing Competitiveness Programme in the nodal

programme of the Government of India to develop global competitiveness
among Indian MSMEs. Conceptualized by the National Manufacturing
Competitiveness Council, the Programme was initiated in 2007-08. There are
ten components under the NMCP targeted at enhancing the entire value
chain of the MSME sector. These are:
Building Awareness on Intellectual Property Rights for the Micro,
Small & Medium Enterprises (MSMEs): The scheme for Building
Awareness on Intellectual Property Rights for the Micro, Small & Medium
Enterprises (MSMEs) has been launched to enable Indian MSMEs to attain
global leadership position and to empower them in using effectively the
tools of Intellectual Property Rights (IPR) of innovative projects. The main
features of the scheme are: (a) awareness sensitization Programmes on
IPR; (ii)Pilot studies for Selected Cluster/Groups of Industries; (iii)
Interactive seminars/Workshops; (iv) Specialized Training; (v)Assistance for

139
Grant on Patent/GI Registration; (vi) Setting up of IP Facilitation Centre
(IPFC); and (vii) Interaction with International Agencies. These initiatives
are being developed through Public Private Partnership (PPP) mode.
Scheme for Providing Support for entrepreneurial and Managerial
Development of MSEs through Incubators:
The scheme aims at nurturing innovative business ideas
(new/ingenious technology, processes, products, procedures, etc.), which
could be commercialized in year. Under the scheme, various institutions

Enabling Manufacturing Sector be Competitive through Quality

Management Standards (QMS) and Quality Technology Tools
(QTT):
During the year 2008-09, Gol launched a scheme, Enabling
Manufacturing Sector be Competitive through Quality Management
Standards (QMS) and Quality Technology Tools (QTT), in order to improve
quality and productivity in the MSE sector. The scheme is aimed at
improving the quality of the products in the MSE sector and inculcates the
Quality consciousness in this sector. The major activities in this scheme are:
(i) Introduction of Appropriate Modules for Technical Institutions; (ii)
Organizing Awareness Campaigns for MSEs;
(iii) Organizing Competition Watch;
(iv) Implementation of Quality Management Standards and Quality
Technology tools in selected MSEs;
(v) Monitoring International study Missions; and
(vi) Impact Studies of the initiatives.

140
 Mini Tool Rooms under PPP mode:

Under the scheme, Mini Tool Rooms under ppp mode, 15 Mini Tool
Rooms will be setup during the 11th Plan period. Competitive bidding
from entrepreneurs and Associations will be invited to set up Tool Rooms
with Government support up to Rs. 9 crore. They will be more
competitive and user friendly as they will not be bound by the
Government procedure and competitiveness will be the only criteria for
selection of promoters of these Tool Rooms. The approved Plan
expenditure under the Scheme is Rs. 135 crore.

Marketing Assistance/ support to MSEs (Bar Code):

The objective of the marketing assistance/ support to MSEs scheme of

NMCP is to popularize the Bar Code registration and motivate the Small
and Micro Manufacturing enterprises to adopt the Bar Code Certification
on large scale and to sell their value added product worldwide and enable
higher export price realization. It also helps in domestic marketing
(wholesale 7 Retail). 75% of annual fee (recurring) of Bar Code
certification for the first three years are reimbursed to Micro 7 Small
Entrepreneurs, under the scheme.

Lean Manufacturing Competitiveness Programme for MSMEs:

Under the lean Manufacturing Programme (LMP), MSMEs will be
assisted in reducing their manufacturing costs, through proper
personal management, better space utilization, scientific inventory
management, improved process flows, and reduced engineering time
and so on. LMP also brings improvement in the quality of products and
lowers costs which are essential for competing in national and

141
 international markets. The total Gol contribution is stipulated as Rs.
28.60 crore (approx) for this scheme. The board activities planned
under the scheme include Total Productive Maintenance (TPM), 5s,
Visual Control, Standard Operation Procedures, Just in Time, Kanban
System, Cellular Layout, Poka Yoke, TMP, etc. The Scheme has been
approved as a pilot project for lean Techniques intervention in 100
Mini Clusters.
Promotion of Information & Communication Tools ICT in
Indian MSME Sector:
The objective of this programme envisages that some of those
clusters of MSEs, which have quality production and export potential,
shall be identified & encouraged and assisted in adopting ICT
applications to achieve competitiveness in the national and
international markets. The total Gol Contribution id stipulated as Rs.
160 crore (approx) for this scheme include. The board activities
planned under the scheme include, identifying target cluster for ICT
intervention, setting up of e-readiness infrastructure, developing web
portable for clusters, skill development of MSME staff in ICT
applications, preparation of local software solutions for MSMEs to
enhance their competitiveness, construction of e-catalogue, e-
commerce, etc. and networking MSMe cluster portal on the National
Level Portals in order to outreach MSMEs into global markets.
Design Clinics Scheme for MSMEs:

The main objective of the scheme is to bring to bring the MSME

sector and design expertise into a common platform and to provide
expert advice and solutions on real time design problems, resulting in
continuous improvement and vale-addition for existing products. It

142
 also aims at value- added cost effective solutions. The Gol contribution
is stipulated as Rs. 50 Crore for this scheme. The broad activities
planned under the scheme include creation of Design Clinics
Secretariat along with regional centers for intervention on the design
needs of the MSME sector.

Marketing Assistance and Technology Up gradation for MSMEs:

The objective of this scheme is to identify and encourage those

clusters of MSMEs which have quality production and export potential
and assist them to achieve competitiveness in the national and
international markets. The scheme aims at improving of the marketing
competitiveness of MSME sector by improving their techniques and
technology for promotion of exports. The GoI contribution is stipulated
as Rs.19 Crore for this scheme. The broad activities planned under the
scheme include technology up gradation in packaging, development of
modern marketing techniques, competition studies, etc.
Technology and Quality Up gradation Support to MSMEs:

The objective of the Scheme is to sensitize the manufacturing

(MSME) Sector in India to upgrade their technologies, usage of energy
efficient technologies to reduce emissions of Green House Gases,
adoption of other technologies mandated as per the global standards,
improve their quality and reduce cost of production, etc., towards
becoming globally competitive. The major activities planned under the
scheme include Capacity Building of MSMEs Clusters for Energy
Efficiency/Clean Development Interventions, Implementation of
Energy Efficient Technologies in MSME sector, setting up of Carbon

143
 credit aggregation centres ad encouraging MSMEs to acquire product
certification licences from National/International bodies.

Skill Development:

The ministry of Micro, Small & Medium Enterprises promotes the

development of micro and small enterprise in the country with the
objective of creating self employment opportunities and upgrading the
relevant skills of existing and potential entrepreneurs. The
entrepreneurship and skill development scheme is implemented by
office of the DC-MSME through MSME-DIs and their branches. The
programme are conducted include entrepreneurship development,
entrepreneurship and Skill Development, Management Development
and Business Skill Development. These Programmes of short duration
and the curriculums based on needs of the Industry and are
customized, if required by the clients. 20% of the targeted Training
programmes are conducted exclusively for the weaker section of the
society (SC/ST/Women/Physically Handicapped), for which no fee is
charged. Besides, a stipend of Rs.500/- per month is provided. The
office the DC (MSME) also conducts vocational and educational
training through its Regional Testing Centre, Field Testing Stations and
autonomous bodies like tool Rooms and Technology Development
Centres (TDCs). These long terms, trade/field –specific and industry-
specific tailor –made courses also include specialized programmes for
Engineers, Diploma holders so that their absorption by the industry is
mediate. A good number of trainees have set up their own enterprises
in creating employment opportunity. The Ministry is at present training
about 3 lakh persons per annum both for business and technical skill

144
 development, which is among the largest programme by any single
Ministry in India. The Ministry is also focusing on socially backward
groups and on least developed areas under its ‘Outreach Programme’.

XIX. Marketing and Procurement

Under Government Stores Purchase Programme, various facilities

are provided to enterprises registered with National Small Industries
Corporation (NSIC) in order to assist them for marketing their
products in competitive environment. The facilities are: (i) issue of
Tender Sets free of cost; (ii) exemption from payment of Earnest
Money Deposit; (iii) waiver of Security Deposit up to the Monetary
Limit for which the unit is registered; and (iv) price preference up to
15% over the quotation of large-scale units. In addition to these
facilities/benefits, 358 items have also been reserved for exclusive
purchase from the MSE Sector. However, as these Guidelines were
/are not of a mandatory nature, the same has failed to achieve the
desired results. To assist the MSEs in marketing of their products,
Section 12 of the new MSMED Act enjoins the formulation of a scheme
of preferential procurement of goods/ services produced/ rendered by
MSEs both at the Central and State/UT levels. Once formulated, the
procurement scheme may be more effective in providing the much –
needed marketing support that MSEs seek so desperately. Each
Ministry/ Department, CPSU, ETC., would have to make specific
mention of the compliance of the preference policy in its Annual
Report to be tabled in Parliament.

145
XX. Export Promotion

Export promotion from the MSE sector has been accorded a high
priority. To help MSEs in exporting their products, the following
facilities/incentives are provided : (i) Products of MSE exporters are
displayed in international exhibitions and the expenditure incurred is
reimbursed by the Government; (ii) To acquaint MSE exporters with
latest packaging standards, techniques, etc., training programme on
packaging for exporters are organized in various parts of the country
in association with the Indian Institute of Packaging; (iii) Under the
MSE Marketing Development Assistance (MDA) Scheme, assistance is
provided to individuals for participation in overseas fairs/ exhibitions,
overseas study tours, or tours of individuals as member of a trade
delegation going abroad. The Scheme also offers assistance for (a)
sector specific market study by MSE Associations/Export Promotion
Councils /Federation of Indian Export Organization; (b)
Initiating/contesting anti-dumping cases by MSE Associations; and (c)
reimbursement of 75 per cent of the onetime registration fee and
annual fee (recurring for first three years) charged by GSI (formerly
EAN India) for adoption of Bar Coding.

XXI. Fiscal Concessions

Under the General Excise Exemption Scheme, full excise

exemption up to $ 375 thousand per annum is provided to enterprises
having annual turnover of up to $ 1 million. However, the limits of
excise exemptions has encouraged tendency among MSEs is to go in
for horizontal expansion (i.e., fragmentation) rather than vertical

146
 expansion and upward graduation into medium and large enterprises.
For incentivizing such graduation of small to medium/ large
enterprises so as to enable them to achieve economies of scale,
extension of excise exemptions to the graduating medium enterprises
on a tapering scale is under consideration of the Government.
XXII. Strengthening of Database

A reliable database is the key input in any policy decision-making

process. This is more so for the MSME sector in view of its large size
and wide disparity among the enterprises within the sector. The
Ministry has so far conducted three Censuses in the year 1971-72,
1992-93 and 2002-03 for strengthening/updating the database on MSE
sector. However, the long gap between the Censuses has limited the
reliability of the MSE database. To strengthen the database for the
MSME Sector, statistics and information will now be collected in
respect of number of units, employment, rate of growth , share of
GDP, value of production ,extent of sickness/closure, exports and all
other relevant parameters of micro, small and medium enterprises,
including Khadi and village industry, through annual sample surveys
and quinquennial census. The quinquennial census and annual sample
surveys of MSMEs will also collected data on women-owned and/ or
managed enterprises.
XXIII. Inclusiveness

The Ministry of MSME launched a special programme, namely,

‘Outreach Programme for Skill Development in Less Developed Areas’
in September 2006. Under this programme, the field office of the
Ministry organizes short-term skill development programmes in the

147
 less developed areas. Such short-term courses are tailor-made for
these areas so as to enable trainees to get employment or start Self-
employment ventures. These programmes are of short duration of 1-3
weeks and the activity selected for trainees are relevant to the local
requirement. The target group consist wholly or partly of
disadvantaged sections. Further, under the recently announced
Promotional Package for MSEs, 20% of Skill Development Programmes
have been reserved for weaker sections along with the provision of a
stipend of Rs. 500 per capita per month exclusively for SCs/STs,
women and programmes, a nominal fee of Rs. 100 is charged.
However, there is no fee for SCs/STs, women and physically
handicapped candidates.
India’s pioneering policies for the development of MSEs Offers
case studies for the developing world. Government has moved away,
though not yet fully, from its role of direct interventions to that of a
friend and facilitator. There is growing realization that protection in the
form of reservation needs to be replaced with easy access to capital,
technology and skill development to integrate the MSMEs more firmly
with the domestic and global economy. And these are now the specific
target areas of the Ministry of MSME.

XXIV. Credit Linked Capital Subsidy Scheme for Technology Up-

Gradation of SSI Industries

The above scheme has been started by the government of India

from 01.10.2000 for a period of five years up to 30.9.2005. Period has
been extended up to end of 11th Five year plan. i.e. March,2012. Small
Industries Development Bank of India will act as Nodal agency. Over a

148
 period of 5 years starting from 01.10.2000, Rs.5, 000/- crores will’ be
give as loan to small-scale industries, for technology up-gradation.
15% back ended capital subsidy will be given to such units who put up
machinery and equipment for technology up-gradation environment.
The Credit Linked Capital Subsidy Scheme (CLCSS) aims at
facilitating technology up gradation by providing 15% upfront capital
subsidy w.e.f. 29th September, 2005 to manufacturing MSEs on
institutional finance up to Rs. 1 crore ($ 0.25 million) availed of by
them for induction of well-established and improved technology in the
specified sub-sectors/products approved under the scheme.

XXV. Assistance for Strengthening of Training Infrastructure of

existing and new Entrepreneurship Development Institutions

The Scheme will be implemented by the Ministry of MSME

which is has the responsibility of promoting and developing the Micro
and Small Enterprises in the country through State Governments/Union
Territories.The Central assistance to be provided would be only catalytic
and supplementary t the contributions and efforts of the States/UT
Governments and other agencies involved in the programme. The
financial assistance will be for specific needs of each case for
improvement in area like building basis, say 50% of the cost restricted
to Rs.100.00 lakh in each case. The State Govt. will examine the
expansion/modernization programmes of EDIs and forward the same to
the office of Development Commissioner (MSME). Nirman Bhawan,
New Delhi-110011, recommending central assistance. The proposals
would indicate clearly the item-wise estimated cost of the project, and

149
 also the sources of finance. The proposals of EDIs received through
State Govt. would be scrutinized by the Screening Committee and after
approval, by the same the projects, will decided the quantum of items-
wise Central Assistance, as per pattern of assistance, which would be
released/reimbursed receipt of a formal request from the State Govt.
after States UTs and other agencies involved in the programme and the
utilization of funds already released. The State Govt. will furnish the
utilization certificates in the prescribes form, to Deptt. Of MSME about
the proper utilization of the grant by the concerned EDI.

XVI. Scheme of Micro Finance Programme

Creating self-employment opportunities is one way of
attacking, poverty and solving the problems of unemployment. There
are over 24 crore people below the poverty line in the country. The
Scheme of Micro-Credit has been found as an effective instrument for
lifting the poor above the level of poverty by providing them worthy.
Total requirement of microcredit in the country has been assessed at
Rs. 50,000 crore. Micro-credit programme works, through NGOs/SHGs
and the merit lies in weekly monitoring and refund of installments. The
total reach of MF programmes is very low i.e. not more than Rs. 5,000
crore. Thus the existing programmes cater to only 5 to 10% of total
requirements and there is considerable scope for expansion of such
programmes. Under the Micro-credit programmes of NABARD in the
field of agriculture and SIDBI in the field of Industry, Service and
business (ISB) NGOs/MFIs are supposed to provide equity support in
order to avail SIDBI finance. But they find it difficult to manage the
needed equity support because of their poor financial condition the

150
 problem has got aggravated due to declining interest rate on deposits.
The office of the Development Commissioner (MSME) under Ministry of
MSME is launching a new scheme of Micro Finance Programme to
overcome the constraints in the existing scheme of SIDBI, whose reach
is currently very low.
XXVII. Institution Building for Intermediaries for
identification of viable Projects
The Government of India would help in institution through
identification and development of intermediary organization, which
would help the NGOs/SHGs in identification of product, preparation of
project report, working out forwards and backward linkages and in,
fixing marketing/technology tie-up. The MSME-DI would help in the
identification of such intermediaries in different areas.
XXVIII. MSE-CDP
Micro & Small Industrial contribute significantly in industrial
production of the country. The office of the development commissioner
(MSME) has launched a scheme namely the Integrated Technology Up
gradation and Management Programme (UPTECH), in 1998, now
renamed as Micro & Small Enterprises Cluster Development Programme.
The scheme applies to any cluster of industries where there is a
commonalty in the method of production, quality control and testing
energy conservation, pollution, pollution control etc. among the units of
the cluster. The scheme aims to take care of the modernization and the
technological needs of the cluster. It covers a comprehensive range of
issues related to technology up gradation, improvement of productivity,
energy conservation, pollution control, product diversification and their
marketing, training needs etc.

151
Progress of Various Government Sponsored Scheme

In the state there are many Central government schemes

implemented by various agencies and financial institutions; progress of
these scheme is as under;

1. Swarnjayanti Gram Swarojgar Yojana (SGSY)

The basic objective of the scheme is to bring the assisted families

(swarojgaries) above the poverty line by providing income generating
assests through a mix of bank credit and government subsidy. The
programme aims at establishing a large number of micro enterprises in rural
areas based on the ability of the poor and potential of each area. Progress
under Swarnjayanti Gram swarojgar yojana (SGSY) can be seen form the
table below;
Table
Progress under Swarn Jayanti Gram Swarojgar Yojna (SJSY)
Year 2008-09 Year 2009-10
S.
Item No. Target Ach. Target Ach.
No.
Jan-10
1. Credit Disbursement118.29 139.38 137.59 113.77
(Amt. in Crs.) Monitor able targets as (83%)
allotted by GOI
132.00 139.38 204.09 113.77
Challenging targets
allotted by State
Government
(Figures in number) (Amt. in Crs.)
2. Credit to SC/ST 25032 30467 102.05 55.81
3. Credit to Women 20025 35075 81.64 69.75
Beneficiaries
4. Credit to Disabled 1502 643 6.12 1.78
5. Credit to Minority 8051 3487 31.06 2.80
Source-SLBC-104th meeting

152
2. Swarna Jayanti Shahari rozgar Yojana (SJSRY)

SJSRY is unified centrally sponsored scheme launched with an

objective to provide gainful employment to unemployed and underemployed
urban BPL families. This programme encourages under employed and
underemployed urban youth to set up small enterprises relating to servicing,
petty business and manufacturing, for which there is a lot of potential in
urban areas. Local skills and local crafts are encouraged for this purpose.
SJSRY is confined to below poverty line beneficiaries only. Progress of the
same can be seen form the table below;

Table
Progress of Swarn Jayanti Sahari Rojgar Yojna (SJSRY) as on Dec.-09

S. F.Y. Application Target Application Disbursed %

No. sponsored Allotted sanctioned Ach
(Persons)
1. 2006-07 33304 5000 11950 9250 239%
2. 2007-08 26908 5500 12128 8729 220%
3. 2008-09 29613 6000 12079 7614 201%
4. 2009-10 26043 6000 7499 2878 125%
(up to Dec.
09)
Source-SLBC-104th meeting

3. Prime Minister’s Employment Generation Programme (PMEGP)

The government of India has announced a new scheme on 15th

August 2008 called prime Minister’s employment generation programme
(PMEGP) after merger of PMRY & REGP schemes.

153
 The schemes envisage a great opportunity to generate employment in
a continuous and sustainable basis both for rural as well as urban
unemployed youth through setting up of new self employment ventures/
projects / micro enterprises. The scheme provides employment opportunity
to a large segment of traditional and prospective artisans in the country at
their place so as to help arrest migration of rural youth to urban areas.
Progress of the scheme for the year is shown in the table below;
Table

S.No. Particulars 2008-09 2009-10

1 Target for the year 3343 3343
2 Application received 6310 10112
3 Application placed befor TFC 4129 7528
4 Application selected by TFC 2239 4819
5 Application rejected by TFC 1200 2709
6 Projects forwarded to banks 1981 4625
7 Projects sanctioned by banks 730 1814
8 Margin money involved (in lacs.) 1713.72 3102.77
9 No. of candidates trained (EDP) 624 1233
10 No. of project disbursed 507 510
11 Margin money released (in lacs.) 1437.50 1553.49
Source-SLBC-104th meeting

Details of all the implementing agency wise is as under;

Table
Progress under PMEGP during the year 2009-10
(MM in Rs. Lacs)
Target Application
Employment Applicant Employment
Received generated established generated
on sanction their
project projects
No. M.M. No. M.M. Nos. No. M.M. No.
DIC 1337 1604.61 6039 10515.3 5960 196 462.2 1763
KVIB 1003 1203.46 2281 3586.69 --- --- --- 1635
KVIC 571 683.69 1278 1893.38 --- --- --- ---
Source-SLBC-104th meeting

154
 o
4. Special Assistance (SCA) Scheme for SC/ST & SRMS

Special central assistance is provided to the state government as an additive

to their special component plan for schedule caste. Special central assistance is
expected to give thrust to family oriented schemes of economic development of
SC/ STs below poverty line by providing resources for filling the critical gaps and
for providing missing vital inputs so that the scheme / programme for SC/St may
be depending upon the local occupational pattern and the economic activities
available, the states have been given full flexibility in utilizing SCA. SC/ST families
having annual income up to Rs. 20000/- per annum in rural areas and up to Rs.
21400/- per annum in urban areas would be benefited under this scheme.

5. Artisan Credit Card Scheme

The artisan credit card scheme was launched on 19th December 2003. the
objective of the scheme is to provide adequate and timely assistance from the
banking institutions to artisans to meet their credit requirements of both
investment needs as well as working capital, in a flexiable and cost effective
manner. The scheme would be implemented both in rural and urban areas. It is
observed that the artisans could not avail the credit facility from the financial
institutions as per targets.
Table -
The progress under the scheme for last 4 years is mentioned below;

Year Application Sponsored Target ACC issued by the banks

2006-07 34009 10000 9303
2007-08 35812 50000 7953
2008-09 34945 20000 8553
2009-10 24993 10000 7034
Source:-104th SLCB Meeting
155
6. Swarojgar Credit Card (SCC) Scheme

Swarojgar credit card (SCC) scheme was introduced in September

2003 to provide adequate and timely credit to small artisans, handloom
weavers, fisherman, self employed person, rickshaw owner and SHG.
Government of India has nominated NABARD as the nodal agency for
monitoring the progress .

156